Make an Impact by Leaving the Gift of a Legacy
Leaving the gift of a legacy is an impactful way of ensuring that your name leaves a lasting impact even after your death. There is a difference between donating to your favourite charities throughout your lifetime and a legacy gift made in your will. With donations, you help make a daily difference, whereas a legacy gift has a lasting impact and ensures you are remembered.
According to research from the Canadian Association of Gift Planners, even though Canadians are charitable, only 5% leave a charitable bequest in their will, according to research from the Canadian Association of Gift Planners. In an Angus Reid survey commissioned by Willful, it was found that 12% of Canadians plan to leave a legacy gift to a charity, 31% are undecided, and 57% of Canadians don’t plan to leave one.
Understanding Legacy Gifts
Legacy gifts differ from donations because the charity of your choice gets the gift after you are gone, whether the donation is a monetary amount, a property, or a percentage of your estate. It can be used to support the organization’s efforts for many years after you are gone. Therefore, you can have a great impact on your community by leaving the gift of a legacy.
Benefits of Leaving a Legacy Gift
There are many benefits to you and the charitable organization when you leave a legacy gift. Unlike what many people think, the gift of a legacy does not mean you will be going less to your loved ones. In fact, Leaving the gift of legacy can be separated from the assets that you leave for your loved ones. If you plan it all you can leave sufficient funds for your loved ones and leave a legacy gift as well.
These are the benefits of a legacy gift:
Leaving a substantial gift
Leaving a legacy gift does not affect your current income but allows you to go to your favourite charity, a more substantial gift when you die. This generous contribution can help support the charity and its valuable work for many years after, no matter how big or small the amount.
Tax incentives
Tax incentives introduced by the Canadian government encourage people to leave a legacy gift. A bequest to a charity in your will ensures a tax credit for the value of the amount, and it’s added to your final income tax return. The tax credit can help maximize what is left in your estate for your beneficiaries. Therefore, by leaving the gift of a legacy you can make an impactful change in your community, receive tax incentives and maximize your estate and leave a lasting legacy for yourself.
Inspiring others
If you have a special place in your heart for a cause, legacy gifting allows you to continue your life’s ideals with your legacy. Charities in Canada rely on your philanthropic example to inspire others to follow in your footsteps!
How to Leave a Legacy Gift
Legacy gifting is easy to organize and can be done in various ways.
In your last will and testament
You can incorporate legacy gifting by including it into your will. There are two ways that you can have it in your estate planning.
You can leave a specific gift to the charity in your will. This can include a fixed asset, a piece of art, or a cash amount paid out in a lump sum. When you pass away, these gifts, debts, and taxes are paid first, and then your residual estate is distributed to your beneficiaries.
However, instead of leaving a set amount, you could decide to leave a percentage of your residual estate to your favourite charity. The benefit to the charity will be the gift may grow over time, giving them a higher income.
It is easy to incorporate a legacy into your will as part of your estate planning process. This can even be done through an online will company like Willful.
Through a life insurance policy
Life insurance policies allow you to leave a tax-free amount to your beneficiaries when you are gone, and it can help you with leaving the gift of legacy.
Depending on the coverage amount you want to leave, you can include legacy gifting into a life insurance policy in these ways:
Choose a charity as your beneficiary.
If you have an existing policy, you can change the beneficiary’s name to a charitable organization. You can also buy a new policy and name the charity as the beneficiary. This ensures a tax credit on your final income tax for the amount the charity receives.
Transfer ownership of a current policy
By transferring the ownership of a life insurance policy to a charity, you immediately benefit by receiving a tax credit for the policy’s current value. You also receive tax credits for the premiums you pay.
Purchase a policy in the name of a charitable organization
You can purchase a new life policy in the name of the organization. You receive annual tax credits for its premiums.
Retirement savings plans and legacy gifts
Canadians can also leave a legacy gift through their retirement plans, whether these are Registered Retirement Savings Plans (RRSPs) or Registered Retirement Income Funds (RRIFs). Once again, your gift will earn tax credits on your final tax return.
Leave a Final Impact
Planning a legacy gift is quick and easy. Whether your legacy is big or small, it will undoubtedly make an impact on the cause you care so much about.
AplusWealth Inc. is here to help Canadians to find the right life insurance.
At AplusWealth Inc., we understand how important one’s legacy is, and we are here to help. An expert advisor is the best person to help you with leaving the gift of a legacy and secure your family’s financial future and guide you to compare different individual life insurance in Canada and find the best life insurance type. A financial advisor or insurance agent will assess your financial needs and goals, look at the existing life insurance policies you may have. They will find a way to cover all your life insurance needs within your budget.
Life insurance and the covid-19 pandemic process are done entirely online. Thanks to our expert advisers who are entirely comfortable with the online life insurance & investment platform, you can take advantage of their expert opinion about if nothing has changed by taking your age and health, liabilities, and goals into consideration. At Apluswealth, you can get a quote, compare the life insurance pricing, and find the life insurance quote you feel comfortable with. Our life insurance advisors will provide you with quotations and the most suitable policy types. Contact our expert advisers today and find out which is the best life insurance for you. If you are one of the Canadians Paying for Costly Life Insurance, contact us and find out how you can save money.
Email: Contact@apluswealth.com
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