What You Need To Know About Planned Giving

More Info: An Introduction to Gift Planning - Anglican.ca

 

Your gift can make a difference
The Gift of Giving   Throughout history, Christians have given generously of their time, energy, skills and financial resources to help those in need and to share the good news of the gospel in the world.  In your own life you may have expressed your personal stewardship in many different ways – as a Sunday School teacher, a hospital visitor, a camp volunteer, or through financial contributions made to church and charity organizations.  Everyone’s list will be unique – a person’s use of time, energy and money reflects their priorities and the activities they believe are worthwhile.  This guide has been prepared to help you consider a variety of “tools” by which your support can make a difference to the people and cause of special importance to you.   What is Planned Giving?   When most Anglicans think of giving, they think of their weekly contribution to the church or annual gifts made to favourite charities.  But there are many ways to give, some of which are called “deferred” or “planned” gifts.  These are gifts which can be made over an extended period during the donor’s lifetime or as a bequest through their will.  Planned Gifts include annuities, stocks and bonds, real estate, or life insurance policies which name a church or charity as a beneficiary.  Canada’s tax laws are designed to encourage charitable giving, so there are often significant tax benefits for the donor.	Options for Planned Giving   A Planned Gift can be made in many different ways.  It is important to choose an option that provides the greatest benefit to you as well as to the organization receiving your gift.  Some options, such as annuities, provide the most significant tax benefits for donors aged 60 and older.  Others, such as the gift of a permanent life insurance policy, allow a donor of modest means to turn relatively small annual premiums into a substantial donation.  Help is available to select a planned giving option that is best suited to your situation and personal wishes.   Designating Your Gift  Some people choose to make a general purpose gift which enables your church to use the gift where it is most urgently needed.  However, your Planned Gift can also be designated for a particular ministry or ministries in the parish, diocese, or national church.  Information is available on the wide range of projects and ministries you may wish to support. There are many creative ways to make a gift provide immediate tax benefits to the donor while ensuring that important ministries are funded.  For instance, some older benefactors have given their house and property to the church, with the agreement that they will continue to live in their home for as long as they choose.  Other forms of giving, such as contributions to church trusts and endowments or gifts of art and other items of value, also provide tax benefits for the donor.
We’re Here to Help You   General Information Parish Administrator 383-7169   Church of St. John the Divine 1611 Quadra Street Victoria, B.C. V8W 2L5 Phone 383-7169 Fax 381-3573   The Wardens acknowledge the Planned Gift of Marie Edith Cooper which has made this brochure possible.
Making a Bequest  When making your will, it is desirable to consult a lawyer or estate planner.  The following information is intended only as a guide.
What is a Will?  A will is a written legal document which outlines how property and other possessions should be distributed following a person’s death.  A bequest is a gift designated in your will.  Some people choose to make bequests in percentages of the total worth of their estate rather than in absolute dollars.  This ensures that the size of each individual bequest remains in proportion to the estate if the total value changes over time. Another important function of the will is the naming of the executor.  The executor is responsible for handling the property and affairs from the time of death until the estate is distributed.  It is also common in a will to appoint guardians for children and to create trusts to preserve the estate until the children reach a designated age.	Bequests Bequests in the form of cash, property, art, collectibles or market securities, such as stocks and bonds, enable church and charitable organizations to carry out important ministries and to plan for the future.  Donors can specify how they would like their bequests to be used as well as the manner in which the money will be distributed.  Some people request that the capital of their gift remain intact while only the income is used, while others select an option where both the capital and income may be expended.
Gift Annuities  Under this plan, a financial gift is used to purchase an annuity which provides the donor with a guaranteed income for life.  The annual fixed income is determined according to the age of the benefactor when the gift is made.  The remainder of the gift is then used to support the ministries designated by the donor.  Depending on the age of the donor, up to 100 per cent of the income received through the annuity may be tax free.  Annuities can be purchased for as little as $1000, using cash, stocks and bonds, securities and other items of value.  A special “Two Lives” plan is also available, which transfers the lifetime income to the surviving spouse of a donor in the event of death.	Life Insurance   Gifts of fully paid-up, partially paid, or newly purchased life insurance policies are an increasingly popular form of giving.  Many people have fully or partially paid life insurance policies that are no longer needed for the protection of their loved ones.  Family members might have become self-sufficient, or other resources may have reduced the need for the insurance policy.  By transferring a full or partially paid insurance policy as a charitable gift, a donor may receive an income tax credit plus a tax credit for premiums paid by the donor.  You may also wish to purchase a new insurance policy, naming a church as the sole owner and beneficiary.  This simple and inexpensive method of planned giving enables you to make a major donation to the ministries you care about, and you will receive a tax credit on the premiums you pay.  If your will is straightforward and your assets are uncomplicated, any practising lawyer is able to draw your will.  If you have significant assets, if there are tax concerns, or if there is a need for trusts, consider consulting a lawyer who specializes in estate planning or one of the consultants recommended by our parish. When making your will, it is desirable to consult a lawyer or estate planner.
What Happens if You Don’t Have a Will?  If you die without a will your estate will be distributed by the government in accordance with its statutory formula.  If you have no spouse or next of kin, or if there is no other party with a legitimate claim, your entire estate may go to the Crown.  A relative or other person who wishes to carry out the functions normally handled by an executor would have to apply to the court to be appointed administrator of the estate. Without a will you lose control over the distribution of your estate, the right to choose a guardian for young children and dependents, and the ability to support people or causes you care about.	A will which a BC resident prepares, if properly dated, signed by the testator and two witnesses, is valid in British Columbia.  Unwitnessed or unsigned wills are not valid in this province.