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Your Legacy Footprint
Planned Giving – Making it Work

By: Karen Wolfe-Milner, CFP, FMA

There’s a lot of “green” in the media these days. There’s green investing, green construction, going green. Our ongoing quest for taking care of our environment is captured in the words “ecological footprint.”

What about our “Legacy Footprint”? What is our impact when we leave a financial legacy to charities, churches, the arts, the environment, scholarship foundations, schools, symphonies, hospitals or others when we pass away? We can each leave our own legacy footprint on the earth for the benefit of future generations.

According to the Leave a Legacy program ( www.leavealegacy.ca ) 81% of Canadians contribute to non profit groups during their lifetime. Sounds good.  But only 7% leave a charitable bequest in their wills. Imagine how powerful it would be if the same 81% left their legacy footprints with their favourite charities. Imagine if they sat down and devised strategies in advance with their financial planner. And don’t think giving is only for the wealthy. Gifts large and small can make a huge difference for organizations building the quality of life of our communities.

There are many ways to give:

• Create your own foundation or charitable gift program
• Gift in kind from existing stocks, bonds, GIC’s or mutual funds
• Name a charity as the beneficiary of your RRSP, RRIF or pension
• Name a charity as the beneficiary of an existing life insurance policy
• Purchase a new life insurance policy specifically to benefit your favourite charity
• Use other assets to gift such as art, jewellery, real estate or vehicles
• Give stock options from your place of work
• Leave a bequest from your estate (general, specific, residuary or contingent)
• Gift monthly or annually from excess personal cash flow
• Share a portion or all of an inheritance
• If you are a business owner, promote charitable giving in the workplace by matching contributions made by your staff
• Remember loved ones with memorial gifts
• Teach your children and loved ones the benefits of giving by getting involved with fundraising events for a local community charity, church or school

With the changes in the tax laws in Canada and the elimination of capital gains tax for securities that are transferred to charity, there can be substantial tax savings on income tax paid during your lifetime, or on the final tax return on death. If you feel reluctant to leave a charitable bequest because you are thinking of your children and relatives, ask your financial planner for help. Leaving a gift to charity may actually increase the benefit to your family after you are gone.

Sitting down with your Certified Financial Planner is the first step to take when exploring the idea of planned giving. Your planner can incorporate and structure your charitable wishes within your financial, retirement and estate planning to complement your overall financial picture. In addition, your financial planner can help you co-ordinate with your attorney and accountant to ensure that your will and tax planning are in alignment with your financial plan.

You can make a difference by leaving your very own legacy footprint for your children, grandchildren and your community, one that will have an impact for many years to come.

Karen Wolfe-Milner, CFP, FMA is an Investment Advisor with RBC Dominion Securities Inc. Member CIPF.

This article is not intended as nor does it constitute tax, legal or investment advice. Readers should consult their own lawyer, accountant or other professional advisor when planning to implement a strategy.