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SPECIAL FEATURE TAKE THE ROAD LESS TRAVELLED There are many ways to give a legacy gift, some more common than others. "On top of bequests (cash gifts), there are tax-free savings accounts, registered retirement savings plans, endowments, charitable remainder trusts, life insurance policies, securities, and even real estate and art pieces," Lin says. "A professional can help you navigate what will make the most sense for your unique situation and maximize your tax-savings." Findlay notes that a life insurance gift can be as simple as naming a charity as the beneficiary to an existing plan or purchasing a new life insurance policy and assigning the charity as the owner and beneficiary. "You will receive a charitable donation receipt for the cash value of the paid-up policy or for the amount of the C R E A T E A L E G A C Y annual premium payments," he says. "This provides a unique opportunity to make a positive impact in the future while receiving tax benefits today." In fact, any gift left in a will, as well as some accounts, including TFSAs, RRSPs and registered retirement income funds can name a direct beneficiary, and this ensures the recipient receives the gift more quickly than if a beneficiary is not named or if a person does not have a will. "If you do not name a beneficiary, the funds are paid to your estate where they will be subject to probate and executor fees," Hikida says. "It's important to note that there can be tax consequences for your estate in naming a beneficiary, and you should discuss this with your tax advisor." Charitable gift annuities offer a guaranteed income for life with minimal or no taxes on income paid out. Individuals aged 70 and over benefit most from this type of giving, as they can combine financial security with tax benefits. "This kind of gift works very well if you're over 70 and require a fixed income," Findlay says. "You can benefit from your age—the older you are, the higher your annual payments from the gift annuity will be. Another great advantage is that they provide a partial tax deduction for the year they are established." A charitable remainder trust allows donors to make a gift where they receive a charitable tax receipt today, and income from the investments in the trust for the rest of their life. "Anything left over will be your legacy to the charity," Hosak says. "It's a versatile way of giving that can be tailored for your needs or those of your loved ones. Because a charitable remainder trust is irrevocable once set up, it's important to take this decision in discussion with your family as well as financial and legal advisors." DONOR ADVISED FUNDS, PRIVATE FOUNDATIONS From a financial planning perspective, Garry Zlotnik, CEO of ZLC Financial, points to the growing popularity of philanthropists establishing donor advised funds, where the donor directs where their philanthropy is applied from a designated fund within the public foundation. "The advantages are that the set-up and ongoing management costs for a DAF are lower than a private foundation," he says. "Further, the investment can be professionally managed and have the benefit of lower investment management fees by pooling of all foundation assets. A donor advised fund can provide a lasting legacy beyond a person's lifetime, and future generations can be involved in deciding which organizations will benefit." " The advantages are that the set-up and ongoing management costs for a DAF are lower than a private foundation. Further, the investment can be professionally managed and have the benefit of lower investment management fees by pooling of all foundation assets. A donor advised fund can provide a lasting legacy beyond a person's lifetime, and future generations can be involved in deciding which organizations will benefit. " –GARRY ZLOTNIK, CEO of ZLC Financial " Leaving a legacy gift to an organization that has benefitted your family is a wonderful way to ensure the organization of your choice can carry out its mission for many years to come. People should also think about the services they want their loved ones and neighbours to have access to in a moment of crisis—like counselling, community connection, or literacy and life skills workshops—the things that make life a little easier in a stressful world. " –GRETA SHUTING LIN, manager, individual giving, Family Services of Greater Vancouver ZLC FINANCIAL FAMILY SERVICES OF VANCOUVER

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