Types of Bequests
- The simplest form is a “specific bequest”, which is a clause in your will that leaves a specified asset or amount of funds to Canadian Yearly Meeting (CYM).
- A “residual bequest” is what is left after specific items, fees, and taxes have been paid. A residual bequest can be a percentage of the amount left in the estate or the entire amount.
- A “residual bequest subject to life interest” is when Canadian Yearly Meeting is the ultimate beneficiary after other beneficiaries have had use of the income from the estate during their lifetime.
- “Contingency bequests” specify that Canadian Yearly Meeting will be a beneficiary in the event of a prior death of other beneficiaries.
This information is general in nature. Canadian Yearly Meeting encourages you to consult with a lawyer in the preparation of your will.
Other options to leave a legacy
A gift of life insurance can become a significant future gift without reducing the size of your estate. The cost is often minimal
You can create a gift of life insurance by:
- naming Canadian Yearly Meeting the beneficiary of a new or existing policy;
- naming Canadian Yearly Meeting the owner and beneficiary of a new or existing policy.
Each option has different implications for your or your estate’s taxes.
RRSP’s , RRIFs, and TFSAs
Leaving these investments to Canadian Yearly Meeting can have benefits for your Estate. RRSPs, RRIFs, and TFSAs can be a large portion of your accumulated assets at your death. On your death, however, 100 percent of the proceeds from these are included in your final tax return. Your estate will have to pay taxes on the full amount.
If you name Canadian Yearly Meeting the beneficiary of the proceeds of any registered fund, you will be issued a charitable tax receipt for the full amount of the gift. This in turn will have considerable tax benefits for your estate that will significantly offset the amount of your gift.
Stocks, Mutual Funds, and Bonds
Quakers often discern how to use our money system to benefit the conditions that are created by that system. A gift of publicly listed stocks, mutual funds, and bonds can be a good way to make donations to Canadian Yearly Meeting and issues you care about because there are no taxes on capital gains for donated publicly listed securities (i.e. a stock, mutual fund, or bond listed on the TSX, NYSE, etc.). As you don’t pay capital gains tax and you receive a charitable tax receipt, the cost of making a gift using stocks, mutual funds, or other securities can be less than if you made a gift of the same amount using cash.
Transferring the shares, mutual funds, or other securities is easily handled by a broker who may charge a small fee for this transfer.
You may also wish to consider donating listed securities in your will instead of making a cash bequest. Because capital gains will not be taxed, your estate could realize considerable tax savings that may increase the amount your beneficiaries inherit.
Endowments: Investments into Perpetuity
An endowment is a gift that will provide income to any area of CYM’s work in perpetuity. Bequests to start a new fund, or to an existing fund with a narrowly defined purpose, should be avoided if possible, as they can become very difficult to administer. Please consult the bequest policy (PDF), which includes descriptions of current established funds that have received endowments.