Do you ever think about the impact you will leave behind after you’re gone? Will you be remembered for your generosity or for the ways you’ve made a difference in the lives of others? No one wants to be forgotten, and if you're like most, you hope to leave behind an enduring effect.
One way to create a lasting impact is to support your favourite charity after you have passed away through a legacy gift. A legacy gift provides you an opportunity to support causes important to you that reflect your values and philanthropic goals.
If you are an advocate for women's and newborn health, you'll be helping transform lives for generations to come by choosing to make a legacy gift to BC Women’s Health Foundation (BCWHF), the largest non-profit organization in British Columbia. BCWHF is dedicated to advancing the full spectrum of women’s and newborn health through innovative care, state-of-the-art equipment and life-changing research as the fundraising partner of BC Women’s Hospital + Health Centre – the only women’s hospital in Western Canada – and the Women’s Health Research Institute (WHRI).
You can make a difference for more than 7,000 women who turn to BC Women’s Hospital + Health Centre to receive life-changing care each month, accumulating to 80,000 patients every year, which includes B.C.’s tiniest babies, their moms and women at all stages of life. And just like it takes a very special group of healthcare heroes to care for every patient, it takes a very special group of health champions to ensure that every patient has life-saving care. Thank you for supporting BC Women’s Hospital + Health Centre.
Importance of legacy giving in estate planning
A legacy gift is often made through your will or estate plan and allows you to support causes of your choice beyond your lifetime, often in a more substantial way than you could during your lifespan.
Whether it’s a bequest of cash, securities or life insurance, if structured correctly, a legacy gift can offer financial benefits, such as tax savings, ensuring both your loved ones and charitable causes are supported.
"When it comes to tax efficiency, a legacy gift helps minimize estate taxes and capital gains taxes, ensuring more wealth is preserved for your beneficiaries," says Paul Sahota, associate portfolio manager with Robertson Investment Group at Odlum Brown.
"Charitable donations made through an estate can reduce the size of the taxable estate, potentially reducing estate taxes or probate fees."
Benefits of non-cash giving
There are various non-cash options that can benefit both you and BCWHF, including the following:
- Donations of appreciated assets "in-kind": Consider donating publicly traded securities or shares rather than donating cash.
- Donor Advised Fund (DAF): With a DAF, you establish a charitable fund with your financial institution and donate cash, securities or other assets to receive an immediate donation tax receipt. Then you advise on which organizations and projects receive grants over time.
"This arrangement can be a way to involve and engage family members in your philanthropic vision," reveals Sahota. "You may also designate someone to continue granting to charities from the DAF after you have passed away."
- Naming BCWHF as a beneficiary of a registered account or life insurance policy: Designating a charity as a beneficiary of a registered account such as an RRSP or TFSA or a life insurance policy enables a direct transfer from the account to the charity upon your passing, bypassing your estate and probate. "You have the discretion to change the beneficiary at any time," adds Sahota.
- Gifts of life insurance: As described above, naming BCWHF as the beneficiary of a life insurance policy ensures that upon your passing, the charity receives the proceeds, providing a tax credit for your estate. An alternative approach is gifting ownership of a life insurance policy during your lifetime, allowing you to receive an immediate tax credit equal to the policy’s fair market value. Additionally, any future premiums paid by you on the policy may also qualify for tax credits.
Consult professional advisors when starting your estate plan
When you're ready to start an estate plan, it's advisable to seek professional advisors, such asa financial planner, investment advisor, accountant, legal counsel and charitable giving experts, to ensure a customized strategy and comprehensive approach. An example of this is the BC Women’s Health Foundation Legacy Advisory Circle, made up of experienced professionals from reputable financial and legal companies, who will guide you through the legacy planning process to ensure your gift has a lasting impact.
For example, it's important to maintain compliance with changing laws. "Because estate laws and tax regulations change over time, professional advisors will keep you updated on these changes to ensure your estate plan remains compliant and relevant," explains Sahota.
Moreover, when it comes to tax efficiency, accountants and financial planners can provide guidance on minimizing taxes, including capital gains tax and probate fees, maximizing the amount passed to heirs or charitable causes. Lawyers can help structure your estate plan in a way that complies with Canadian tax laws and provides charitable tax credits.
BCWHF can work with your advisors to help you receive maximum benefits and make a difference in the lives of women and newborns in B.C.
Sahota reiterates, "Your legacy gift can play a critical role in advancing women's health research, improving access to healthcare and supporting services for women’s well-being in your community and beyond."
For more information and ways to support through legacy giving, visit bcwomensfoundation.org.
