Will Bequest

Will bequests are among the simplest and easiest ways of planning a donation. Once you have ensured that your family and loved ones have been taken care of, you can choose to leave some or all of what remains of your estate to one or more charitable organizations, such as the Montreal Heart Institute Foundation.

There are many ways to donate:
• A specific bequest (a precise amount or specified property)
• A residuary bequest (all or a percentage of what remains after debtors have been paid and specific bequests fulfilled)
• A legacy (the sum total of all property, sometimes subdivided among several beneficiaries)
• Naming a beneficiary of an RRSP, pension fund or insurance policy

In each case, an official receipt is issued and may significantly reduce estate taxes.

Example:
In her will, Mrs. Smith left her assets to her two children and donated $25,000 to her favourite charity, the Montreal Heart Institute Foundation. She knows that by donating through her will, tax credit will reduce the cost of the gift by half.

Earned income in the tax year of Mrs. Smith’s death: