Your guide to leaving a legacy & estate planning
Spring 2013
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Grant A. Zimmerman*
Roberta J. Stewart*
Gaurav Parmar*
Allison A. Read
Brad E.L. Douglas
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R. Leah Mckenzie-Brown
Northern BC’s Lawyers Heather Sadler Jenkins LLP is the largest full service law firm in Northern British Columbia, and has proudly served this region since 1971. The HSJ team is made up of over 50 people, including 17 lawyers. Our experienced and dedicated team stands behind each and every client. We can assist you in all major areas of legal practice.
WILLS & POWERS OF ATTORNEY ESTATE PLANNING ESTATE ADMINISTRATION
TEL (250) 565-8000 OUT OF TOWN CALL TOLL FREE 1 (866) 565-8777
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A gift to community and to your heirs
Canadians have always been generous in donating their time and money to charitable organizations. But in recent years, they’ve had to be even more generous. Because governments have cut back on direct funding to charitable groups, the responsibility has fallen on corporations and individuals to fill the gap. Fortunately, a number of tax incentives have been introduced by governments to encourage more private giving. With these legislative changes, the structure of charitable giving can be just as important as the amount that is given, both to the charity and to the client. “Above all things, have fervent charity among yourselves, for charity shall cover a multitude of sins.� 1 Peter 4:8. Charitable giving is a unique opportunity There are not all that many opportunities in life to ‘have your cake and eat it too’. Planned or charitable giving is one of them. A planned or charitable gift is defined as a gift to a charitable organization made in such a way that you’re able to maximize any tax and estate planning advantages. Your gift can take many forms and be made in a variety of ways Planned gifts can take many forms including cash, publicly traded stocks, bonds, stock options, mutual funds, cultural and art objects, real estate and life insurance proceeds. In addition to gifts made prior to death, some of the ways in which gifts can be
made are: Bequests under a will – There are many options for creating a bequest in your will, each with advantages and disadvantages. You should seek the advice of an expert to find out which might be best for you. Life insurance - You can put a life insurance policy in place that will pay a specified sum to the chosen charity by naming it the beneficiary of the proceeds. You can then claim the annual cost of the insurance policy as a charitable donation, even though the money is bequeathed only upon your death. Or you can name your estate as your beneficiary and include the charity in your will. In this way the tax advantage is for your estate. Gifts of RSP or RIF assets Charitable gift annuities – This allows you to give a lump sum to a charity and receive periodic income in return. This arrangement is most beneficial for those aged 70 or over. Charitable remainder trusts – This is essentially a living trust you establish by contributing your assets and which pays you an income while you’re alive. Upon your death the remainder of the trust will pass directly to the charity you have named. The advantage is that you can enjoy tax advantages while alive, compared to a bequest which only benefits your estate. Please note: This section on planned giving has been included in the Estate Planning section because so many charitable turn to 3
Invest in Students CNC has been training students in health sciences, trades and University Transfer education since 1969. You can buy state-of-the-art equipment at CNC, which will go directly into the hands of students. You can also invest in scholarships, bursaries and endowments named after loved ones. All donations are eligible for a tax receipt. Contact Annette Stevens, Fundraising Coordinator at 250-562-2131 ext. 5313 or email stevensan@cnc.bc.ca
BCSPCA SPEAKING FOR ANIMALS
College of New Caledonia B R I T I S H C O L U M B I A • C A N A D A • W W W . C N C . B C . C A
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PASSING IT ON
Legacy Project - Free Press
May 2013
Your can create a lasting legacy of love for all of BC’s children It is a magical thing to know that a decision you make today could save the life of a child 20 years or more from now. But that’s what happens when you include BC Children’s Hospital Foundation in your Free Press file photo
Court Services employees Hillary MacInnis, left, and Rhonda White, right, present Prince George Hospice Society marketing officer Dianne Sears with a cheque for $410.11, raised from donations by workers who wore jeans to work on Fridays last year. The society is one of many local groups which needs donations and legacies to operate.
estate plans.
Small Patients Great Needs
A gift that keeps on giving from PAGE 2
gifts are based on a transfer of assets upon death of the donor. One reason for this is the fact that in the year of death and the previous year, 100 per cent of the donation can be deducted from the net income of the estate. However, you should be aware that planned giving while you’re alive can also provide you with significant tax advantages, up to a maximum of 75 per cent of net income per year. In both cases, whether as part of your
estate plan, or as part of your financial and tax planning, it is strongly recommended that you seek guidance from independent experts to ensure that all your financial goals and your wishes for the charitable organization are met. One person who can help you is an RBC Financial Planning professional. This information is not intended as nor does it constitute tax or legal advice. Readers should consult their own lawyer, accountant or other professional advisor when planning to implement a strategy. Mark Ryan is an Investment Advisor with RBC Dominion Securities Inc. Member CIPF.
Your gift lives on…
For more information or to let us know you have made a gift through your estate, please contact the Gift & Estate Planning team at 1-888-663-3033 or plannedgivinginfo@bcchf.ca.
www.bcchf.ca
CRISIS CENTRE FOR NORTHERN BC
When there’s no one else to listen A planned gift makes a difference for low-income working families and our community. By supporting Habitat for Humanity, you’re helping us to build affordable homes for families to purchase. This builds pride and creates more opportunities for their young children through the stability and security of home ownership. Your gift lives on with 100 percent of your donation going to the Habitat build programs helping to break the cycle of poverty housing.
Leave a Legacy to support those in need.
Families thrive. Communities prosper. Everyone wins.
For more information on Planned Giving with Habitat for Humanity, please contact: Jo-Ann Pickering Habitat for Humanity - Prince George 220 Queensway, Prince George, BC V2L 1L2
Prince George
250-563-1214 1-888-562-1214 www.northernbccrisissuicide.ca
13134 6066 RR0001
live chat at... 13134 You 6066can RR0001
1-888-564-8336(TEEN) www.northernyouthonline.ca
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Helping garden grow
elp o neself
DELYNDA PILON newsroom@pgfreepress.com
Camp Trapping – 40 years of continuous service for youth in a supportive, caring, structured environment. Our program provides a life changing opportunity and service. You can provide a gift that allows us to continue to enhance the experience for these young men.
A gift to Camp Trapping can help us to continue to change lives – forever. #130-1460 Sixth Avenue, Prince George, BCV2L 3N2 Phone: (250) 563-9159 Fax: (250) 563-9154 email: cats@bcgroup.net
Cariboo Action Training Society
Carefree Society is your local Handy Dart and Community Bus operator
The David Douglas Botanical Garden Society provides a sanctuary for residents of the city, offering a lilac walk paved with stone, a bridge and waterfall as well as a myriad of beautiful plants and flowers that offer visitors a beautiful green space to enjoy. Corrine Gibson, president of the society’s board of directors, added that the garden is maturing and changing, and though it isn’t quite a botanical garden yet, the goal is in sight. Gibson, who just returned from the Chelsea Garden Show in London, explained that a botanical garden must meet specific criteria. “Our vision is to build a botanical garden in the north,” she said. “We have an educational display garden at the UNBC grounds. It’s not a botanical garden yet. The project is part and parcel of a bigger project. We’ve been in talks about doing a true botanical garden on a much larger scale. “Botanical gardens have very specific criteria. They are well-tended areas with plants labelled with their botanical names. They are a more detailed garden than what we have at UNBC. It’s just more than what we have there.” She added she visited the Kew Gardens in London, a true botanical garden, and pointed out the Bouchart Gardens in Victoria is not a botanical garden, but rather a show garden “A botanical garden has a more specific purpose, and we haven’t taken ours to that level yet. It’s a more intense scientific garden,” she said. “From that standpoint
it doesn’t lessen what we have up there.” After receiving an annual grant from the city, the society is planting an educational hedge row showing the different species of hedges that grow. “That is something you would see in a botanical garden,” she said. “At some point in time the one there may become a botanical garden. The elders are having a gathering in July which includes a holistic plant tour. It’s a wonderful educational experience. A public garden is there to educate people. It can still have as much impact as a show garden like Bouchart. “Botanical gardens have a real history. Ours certainly has the potential to be that. We are working towards that with what have now, with the bridge, waterfall, and the lilac walk paved with stones. The Rotary Pavilion is being developed. You’ll see, even by the end of summer a significant difference in that garden. “What’s there is developing and beginning to mature, and now more money to put in more plants.” Volunteer hours make the garden what it is. She said the plant sale alone requires upwards of 600 volunteer hours, and the society makes a significant amount of its operating budget from the plant sale. There are other major donors. Last year Canadian Tire donated much of the gardening supplies it had left over at the end of the season. Other donors include well-known local families. Gibson said she really understands people with wills and estates often want to give to something like the gardens, which has lasting purpose and continuity. turn to PAGE 5
Prince George Needs her Creativity!
We provide specialized door to door transportation, operating as a shared taxi. To use our service you must have a disability that prevents you from using the city bus. Carefree is dedicated to our Community, continually fund raising for bus replacement and extra service demands. A Legacy gift will ensure our ability to serve your community.
Creativity is the core of her ability to come up with innovation and solutions to problems.
Carefree Society 2832 Queensway St. Prince George, BC V2L 4M5 Charitable Tax Number 11883-8358-RR0001
Your legacy is an investment in the young minds that will help the community prosper in the coming decades. Any contribution you are able to make is a generous one.
Contact: Peter Thompson, Managing Director Two Rivers Gallery 725 Civic Plaza Prince George BC V2L 5T1 Tel: 250-614-7803 peter@tworiversgallery.ca
Prince George Regional Art Gallery Association CRA# 107858763RR0001
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Garden offers a unique opportunity to donors from PAGE 4
Some donations are marked by the society commemorating the name of the donor on a bench or tree. “Each level of dollar value has a commitment from us,” she said, adding some significant donors were acknowledged by a portion of the garden bearing their family name. “Some people just want to give with no caveats or restrictions,” Gibson said. “It has become a part of the Prince George landscape.” Gibson said as with most non-profits, finances are always a consideration, so it becomes important to know how to encourage donors that your organization is worth supporting. Gibson added there are many groups out there doing great work, and although the botanical garden doesn’t fill the daily needs of people, like food and housing, it does offer something unique, a sanctuary for the community. Gibson hopes to offer that sanctuary more widely, perhaps by partnering with Exploration Place to offer children a day in the garden, or with the symphony. She said she’d love to see the orchestra set up along the pavilion with people meandering through the garden listening to the beautiful music. “Although it’s not feeding day to day needs, there is another contribution you make to the community when you offer a place of sanctuary,” she said. Plus the educational value is endless, helping people to understand the benefit of plants, not just the aesthetic value, but that it offers protection, a home for wildlife sustainability as well as food. “We are really with students who want to De Ly nd a PILON/ Fre e Pre s s green the city, who are looking at building a The flowers along the lilac walk at the David Douglas Society garden at the university are coming into bloom along dome at the university to grow vegetables.” a path that meanders down to a bridge and water feature, also part of the garden.
The Spirit of the North is proud to work with donors who would like to make a bequest to support healthcare in the North. Recently, the Spirit received a bequest from long-Ɵme northern BC resident, ValenƟna Goodwin. ValenƟna always had a love for the outdoors, animals and helping those who were facing challenges. Val was born in Prince George and it always held a special place in her heart. In 1942, at the age of 16, her father purchased land along the Hudson’s Bay Sough between what is now Queensway Street and Norwood Street. Val helped her father haul logs with horses to build their home; that home is where Val lived for most of her life. She was an incredibly hardworking and independent woman who ran the Caribou Trailer Court that her father had started. She raised two children on her own as well as caring for her horses, dogs, ducks, geese, chickens, steer, sheep and cows. She loved the land and her animals. Her land gave her an outlet for her passion of gardening, which she carried on her enƟre life. Beth BresseƩe, a close friend of Val’s daughter, who became Executor of Val’s estate, shared that “Val always held a soŌ spot for all those who were disadvantaged in any way and was always looking for ways to help. She was a kind, caring and compassionate woman.” Despite facing many challenges herself, Val always stayed posiƟve. In planning her estate, she sat down with Beth and went through informaƟon about a number of chariƟes. UlƟmately choosing to leave bequests to 9 chariƟes whose work resonated for her and reŇected the values she had lived throughout her lifeƟme. “Val chose them all very carefully; she wanted to leave the most impact that she could,” stated Beth, “She chose the Spirit of the North Healthcare FoundaƟon so that all people would have an opportunity to have their health care needs met.” We are honoured to have been chosen to be a part of Val’s careful decision-making and will steward her bequest to ensure it helps provide the best of care close to home. For more informaƟon on how you can support healthcare in the North by making a giŌ through your estate, please contact the Spirit of the North Healthcare FoundaƟon oĸce at 250-565-2515.
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Looking for a professional executor or assistance with your own executor responsibilities? We can help. Today's complex estate and tax legislation means increasing demands on the executor. The specialists at Scotiatrust are experienced, impartial and may be your best choice as executor. In addition, this same expertise is available to support you should you be named as executor, providing peace of mind at a difficult time. To find out more about our executor services, Call today.
Ray Noonan, STI, PFP, MBA Northern BC Region 390 Victoria St, Prince George BC 250-981-3140 ray.noonan@scotiaprivateclient.com Trademark of The Bank of Nova Scotia, used by its affiliates under license.
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Canadian Red Cross – people helping others If you were to witness a fire, a flood, a famine, or a disaster, what would you do? Your first instinct is likely to help. That powerful human instinct – helping people in crisis – is at the very heart of the Canadian Red Cross. There will always be situations where the Red Cross is needed, but we can only be there with your support. We cannot stop famines or floods, but as long as there are people like you who are prepared to help, our humanitarian spirit can endure. One individual can make a difference. You can leave a lasting legacy by including a gift to the Canadian Red Cross in your will. Your gift will help the Canadian Red Cross endure and continue to represent you – the very best of humanity – at the very worst of times. The Canadian Red Cross has a nationwide team of over 30,000 dedicated volunteers who provide valuable services when and where they are needed. They help communities facing disaster and teach people how
to be safe from abuse and violence through RespectED programs. The Canadian Red Cross provides critical First Aid training and over one million Canadians take their swimming and water safety programs. We are part of your community. A will ensures that your wishes are carried out exactly as you planned and helps to avoid unnecessary legal expenses and taxes. A will that includes Red Cross allows you to make a significant and lasting legacy to humanity. Charitable gift annuities, life insurance, gifts of property, listed securities or investments and charitable remainder trusts are other options available to make a legacy gift to the Canadian Red Cross and mobilize the power of humanity. The work of the Canadian Red Cross is made possible with the generosity and compassion of people like you. To find a Planned Giving Representative and learn more about how your gift can benefit humanity, visit www. redcross.ca/legacy.
Helping people since 1957
Diabetes is a growing epidemic. With more than 20 Canadians diagnosed every hour, chances are diabetes will affect you or someone you love. But you can make a difference…
Leave a legacy of hope for a better future
Let a cure for diabetes be your legacy Please join the fight against diabetes by leaving a gift in your Will. For more information on legacy giving and/or other giving opportunities visit diabetes.ca, call 1-800-BANTING (226-8464) or contact Boyanne at 250-561-9284.
diabetes.ca
950 Kerry St., Prince George, BC V2M 5A3
250-564-6408 Visit our website Charitable Registration #11883 0744 RR0001
Charity Number 11910 3323 RR0001
www.aimhi.ca
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■ ESTATE PLANNING
Wills, powers of attorney key elements Make sure cornerstones are in place before building rest of estate structure While there are many elements to a comprehensive estate plan, two documents are considered the cornerstones of estate planning and should be prepared by all competent adults. These are a Will and Powers of Attorney. WILLS People delay preparing their Will for a number of reasons. Some may feel they are too young, others that they don’t possess enough, still others that they have “lots of time”. Whatever the reason, approximately 50% of adult Canadians die each year without having prepared a Will (known as intestate). If you die without a valid Will, your estates will be distributed according to an arbitrary provincial formula, which may not reflect your wishes. You also lose the right to select the executor of your choice to administer your estate and forfeit certain probate and tax planning opportunities. Generally speaking, it is more costly and time-consuming to administer an intestate estate. BENEFICIARIES While your choice of beneficiary or beneficiaries may be obvious (for most people this means family and/or charitable organizations), careful consideration should be given to how and when your bounty should be passed on. For example, would an outright distribution or an ongoing trust be more appropriate? Consideration must also be given to any legal obligations (to a spouse, to dependents, under a domestic or business agreement) you may have. It is also recommended that you name con-
tingent beneficiaries to address the possibility a beneficiary may predecease you. CHOOSING AN EXECUTOR Your executor is responsible for administering your estate according to the wishes set out in your Will. Being appointed as executor is an honour but also a highly demanding responsibility with many duties. The emotional strain can be high and family conflict is not unusual. When choosing an executor, thought should be given to the expertise, availability and willingness of the individual you are considering to assume the duties and responsibilities involved. If you are appointing an individual, be sure to name an alternate to cover the possibility your first choice may be unable or unwilling to act. Depending on the circumstances, a corporate executor, such as Scotiatrust, may be your best choice. POWERS OF ATTORNEY A Power of Attorney (Mandate for Incapacity in Quebec) is a legal document that gives someone else the right to act on your behalf. There are two basic types: for property management and for personal care. In British Columbia, Representation Agreements govern the latter and may also be used in respect of the management of property. Should you become incapable of managing your financial affairs or making decisions about your personal care and you do not have Powers of Attorney in place, an application to court may be required to appoint someone to make these decisions for you.
A LASTING LEGACY
Fre e P re s s file p h o to
When Mary Kordyban, left, and Barbara Kaminsky, the CEO for B.C. and the Yukon for the Canadian Cancer Society, unveiled an artist’s rendering of what is now the Kordyban Lodge, it marked a legacy for Mary’s late husband, William, who died from cancer more than a decade ago. CHOOSING AN ATTORNEY Acting as an attorney entails significant duties and obligations. You should be aware of the potential that the document could be abused and ensure you appoint a reliable and trustworthy individual and/or institution (such as Scotiatrust) to act as your attorney. Elaine Blades is Scotiatrust Direc-
tor, Fiduciary Products & Services. This document is intended to provide general information related to Will and estate planning and is not intended as legal, tax or other advice. No one should act upon this information without seeking the advice of their own professional advisors. Scotia Private Client Group® consists of private client services from The Bank of Nova Scotia, The Bank
of Nova Scotia Trust Company, Scotia Asset Management L.P., Scotia Asset Management U.S. Inc., ScotiaMcLeod Financial Services Inc., WaterStreet Family Capital Counsel Inc., and ScotiaMcLeod®, a division of Scotia Capital Inc. Scotia Capital Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.
PG Community Foundation Agency Funds 1. Burns Lake Community Foundation Endowment Fund 2. Chilako River Nechako Community Foundation Endowment Fund 3. Child Development Centre 4. CNC Endowment Fund 5. Community Arts Council Fund 6. Cranbrook Hill Greenway Society 7. Crooked River – Parsnip Community Foundation Endowment Fund 8. Cultural Communities Legacy Fund 9. Disadvantaged Youth Fund
10. Fort St James Community Foundation Society Endowment Fund 11. Hixon – Woodpecker Community Endowment Fund 12. Kitimat Community Foundation 13. Kordyban Lodge Endowment Fund 14. McBride Community Endowment Fund 15. Multicultural Heritage Society Fund 16. PG Hindu Cultural Society Fund 17. PG Community Foundation Administration Endowment Fund 18. PG Concert Association Fund – Northern Stars
Givin g Something Back
The Prince George Community Foundation can serve as your one-stop gift-giving centre. Whether your interest is in arts & culture, education, environment, health, social services and sports & recreation, or a specific charity of your choice, we can direct your donation to a fund that satisfies you as a donor. Donations of all kinds are graciously accepted: cash, cheque, credit card, life insurance, securities or through estate planning.
19. PG Hospice 20. PG Symphony Orchestra Fund 21. Railway and Forest Industry Museum Fund 22. Salmon River – Lakes Community Endowment Fund 23. Springboard to Success – School District 57 24. Terrace Community Foundation 25. Theatre Northwest 26. Two Rivers Art Gallery 27. UNBC Northern Medical Fund 28. Valemount Community Endowment Fund 29. Willow River – Upper Fraser Endowment Fund
PO Box 1204, Station A 2880 15th Avenue Prince George, BC V2L 4V3 250-562-7772 www.pgcf.ca pgfoundation@telus.net
We are here to see that your gift-giving wishes of today become a reality in the community forever. We provide the opportunity to make a lasting charitable donation to enhance our community forever
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Faces at St. Vincent de Paul changing TERESA MALLAM arts@pgfreepress.com
The face of poverty has aged along with the city – and not in a graceful way. For over 30 years, volunteer Bernie Goold and her husband, Jack, have worked tirelessly to improve the lives of less fortunate people in Prince George who have fallen on hard times and need help getting back on their feet. A cooked meal is a good start. But now they are finding that more and more seniors are joining in the line-up to get meals at Saint Vincent de Paul drop-in centre. Their Old Age Pensions and personal financial circumstances often to not allow them to keep up with the cost of living, says Bernie. “We serve between 250-260 meals per day at the drop-in and we helped over 1,241 needy families last year. The biggest difference we are seeing in recent years is the numbers of seniors who are now using our service. And we’re also helping out families who were affected when good-paying jobs went out of town and the community replaced them with lowerpaying jobs.” Those families just can’t make ends meet, said Bernie. People are often embarrassed to come to St. Vincent’s for help, it is often a last Fre e P re s s file p h o to resort and a big step to admit they need Not all donations are legacies. Sharon Rees (left) of Vanilla and Jacquie Clarke of Butterfly Threads (right) present Saint the help of others. Vincent de Paul’s Bernie Goold with proceeds from their 2010 Sharing the Warmth Fashion Show. Coles also donated “We just let them know that this could happen to anyone and that there’s noth- 200 pairs of reading glasses to the cause. ing to be ashamed about. We want them get them into their new building which “People in the local community have less, unemployed, elderly and those in , to feel comfortable coming in and having provided more space for their society’s been a tremendous help to us,” said Ber- dire circumstances in Prince George may a meal.” ever-growing service in the community. nie. “We couldn’t have done what we want to leave money in their will to the In 2002 and 2003 St. Vincent de Paul Since then, donations have trickled in have over the years to help people with- Saint Vincent de Paul Society. was very fortunate to receive two legacy and the society is very grateful for every out their generous donations.” For more information, contact Goold at donations of $50,000 – enough money to penny. Anyone who wants to help the home- 250-564-3416.
donate to Big Brothers Big Sisters of Prince George you start something for local kids - and it could be the start of something big such as
A healthier community
start something Your gift will help ensure that British Columbians with spinal cord injury (and related disabilities) & their families will continue to receive the essential support and services needed to help them adjust, adapt and thrive - whether they are dealing with a new injury or struggling with the ongoing challenges of living and aging with a physical disability.
For more information, visit www.sci-bc.ca or call 1-800-689-2477 Please note: gifts should be made to our legal name, which remains Canadian Paraplegic Association (BC)
www.bbbspg.ca 250.563.7410
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Make sure estate plan is complete CHOOSING AN ATTORNEY
SCOTIA PRIVATE CLIENT GROUP Special to Free Press
‘‘
You know the importance of having an up-to-date Will, but your estate planning shouldn’t end there. Your estate plan should also include Powers of Attorney (also Representation Agreements in British Columbia) in anticipation of possible future incapacity.
POWERS OF ATTORNEY
Acting as an attorney entails significant duties and obligations. You should also be aware of the possibility that the document could be abused and ensure you appoint a reliable and trustworthy individual and/or institution (such as Scotiatrust) to Should you act as your attorney.
become incapable of managing your financial affairs or making decisions about your personal care, and you do not have Powers of Attorney in place, important decisions about your finances or care may go unmade.”
A Power of Attorney is a legal document whereby you appoint someone else to act on your behalf. There are two basic types: for property management and for personal care. In British Columbia, Representation Agreements govern the latter and may also be used in respect of the management of property. Should you become incapable of managing your financial affairs or making decisions about your personal care and you do not have Powers of Attorney in place, important decisions about your finances or care may go unmade. An application to court may be required to appoint someone to make these decisions for you.
PEACE OF MIND FOR YOU AND YOUR FAMILY
For over 100 years, the professionals at Scotiatrust have been helping Canadians plan for life. We have the expertise and experience to professionally manage and administer estates of varying complexity and value in our role as attorney and/or executor. Working with our knowledgeable team of professionals is an effective way of developing an estate plan that addresses your goals and objectives, providing you and your family with valuable peace of mind.
Saint Vincent de Paul
Prince George
St. Vincent de Paul offers meals, hampers and many support services to those in need in our community. The St. Vincent de Paul store provides good quality goods for reasonable prices and all proceeds are used to support the other services offered. St. Vincent de Paul depends on the generosity of many to support those in need. Please think of the good your donation to St. Vincent de Paul will provide.
STORE 1180 Third Avenue, Prince George, BC
DROP-IN CENTRE 1220 Second Avenue, Prince George, BC
The Saint Vincent de Paul Society Box 1617, Prince George, BC V2L 4V6
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Anyone can leave a lasting legacy
PETER CHIPMAN Special to Free Press
Gifts to the Canadian Cancer Society fund research and prevention initiatives and help families like the Kents create life-changing memories at Camp Goodtimes.
Join the fight. Leave a legacy. Did you know that a legacy gift to the Canadian Cancer Society can fight cancer and protect your estate from tax? The Estate Tax Eliminator Clause can reduce your final taxes to zero. You can help fund the best cancer research, prevention and support programs. For your copy of the Estate Tax Eliminator Clause and a Personal Estate and Will Planning Guide, please contact Toni Andreola at tandreola@bc.cancer.ca or call 1 800 663 - 2524.
cancer.ca
Assisting Prince George and Northern BC families with children in Friends extraordinary medical of Children need since 1999.
We can all be philanthropists and here’s how you can do it. Every day in the Central Interior and British Columbia in general, people’s lives are enriched by the work of not-for-profit and charitable organizations in our communities. Meals for isolated seniors, equipment and services for ‘special needs children’, summer jobs for disadvantaged high school students, funding for mental health or cancer research or a live performance by a local arts organization are just some of the ways not-for-profit organizations improve our lives. Financial assistance is essential to support this work. A vast majority of British Columbia residents generously give their money and time to local not-for-profits. But many people are unaware that by making a gift in their Will or estate plan to the charities of their choice, they can continue to help people in need and support their favourite cause, far beyond their lifetime. And there may be tax benefits from these charitable gifts that could leave more net money to your heirs and/or other beneficiaries. This is because there may be substantial income tax to pay on your final tax return and the charitable bequest will offset this. The donation can be large or small depending on your means and motivation. It can be money, insurance, property, public company shares or other
assets, but one thing is vital. But it has to be in your Will. Variety - The Children’s Charity of BC is often the recipient of a legacy from the Will of a generous benefactor, and many of these people made the decision to include Variety’s ‘special needs’ children’ in their Will years ago. Many Canadians still have not prepared a Will (approximately 60%) so if this includes one of you, perhaps now is the time to think about it. Whether you make a charitable gift now or you do so through your Will, you should be comfortable that your generous gift is being used wisely. Variety receives donations and legacies from people all around the province, and through these legacies these good people are able to make a gift of significant impact. For those of you who watched our Variety - Show of Hearts on Global Television in February of 2013, you know that dreams can come true for children from all parts of British Columbia. Please be assured that your generous donations to Variety are being wisely spent on the children who have special needs here in BC. And also know that when you create a legacy like a bequest in your Will, you are making the most generous gift that you possibly can, and it will last far beyond your lifetime. So you see! We can all be philanthropists. We just have to leave a legacy. Peter Chipman, BBA, CFRE is Director of Planned Giving, Variety - The Children’s Charity of BC.
BC NEW HOPE RECOVERY SOCIETY
Addiction Recovery & Therapeutic Community
Friends of Children is a charitable organization that relies upon donations. Your donations go to families with children in medical need.
PLEASE CALL TOLL FREE
1.866.564.2217 www.friendsofchildren.ca
Ad space sponsored by Girard Financial Services Phone 250.564.2217 | Fax 250.564.2247 PO Box 2463, Prince George, BC V2N 2S6
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BALDY HUGHES THERAPEUTIC COMMUNITY 34000 Blackwater Rd Prince George, BC V2N 6H1
Phone: 250-964-3136 Fax: 250-964-3162 info@baldyhughes.ca
Prince George - The
www.pgfreepress.com
Legacy Project - Free Press
May 2013
11
■ MEETING THE INTENTIONS
Executor and charity must work together
such as a Wills Variation Act claim, interpretation of the Will, claims of incapacity, Special to Free Press or undue influence. The charity will seek In part I of this series, I looked at the advice from legal counsel and in most relationship between the executor and cases, refer the matter to their counsel the charity where the charity is a benefi- for ongoing litigation or settlement. They ciary of an estate, specifically the rights may also engage in mediation where it is and obligations of the charity and some appropriate. of the considerations within the adminisMost often, these claims arise where tration of the estate. the individual did not discuss their This article will consider the plans with family or they put roles of the executor and the their plans in place without charity in ensuring the gift is appropriate legal or financial properly received and receipted advice. If more clients and and the client’s intentions are donors ask questions, and as met. more advisors and charities As the administration of the work together, the issues that estate progresses, the executor What the quescan arise could be dealt with will keep in contact with the tions reflect is through thoughtful estate charity representatives to let the opportunity and gift planning while the them know about the status of for a donor to client is alive. the sale of any property, the work with the Where there is more than consolidation of bank accounts charity, the one charity, and assuming a and investments, payment of executor and the common interest, they will liabilities, and the timing for donor’s advisors often choose one lawyer to the distributions to the benefi- to put in place a act for all charities. In balancciaries. gift that is mean- ing the public relations issues CLAIMING THE TAX CREDIT with the desire to ensure the ingful to the Where the Will includes a donor and one donor’s wishes are met, the charitable gift, it is possible to that will carry charities want to speak with file the claim for the tax credit out the donor’s one voice in dealing with the before making an actual distri- legacy for the executor or family members. bution from the estate. Canada community.” That is also more cost-effecRevenue Agency will accept the tive and expedient for the following in lieu of an official income tax charities and for the estate. receipt. The charity is often excused from the • A copy of the Will Wills Variation Act action when the gift to • A letter on behalf of the estate to the the charity is small or the family doesn’t charity named in the Will want to disturb the charity’s portion of • A letter from the charity acknowledg- the estate. That is where the notes on file ing the gift and stating it will accept the and evidence of the donor’s intentions gift with respect to the charity are important. • A copy of the disclosure statement COMPENSATION FOR EXECUTOR WORK filed with the probate registry The charitable beneficiary will want to A copy of the death certificate should see the executor fairly compensated for also be filed with the terminal return. the work on behalf of the deceased. At The donation and tax credit may be the same time, the charity has a duty to claimed on the terminal return with the ensure the donor’s intentions are hontax credit offsetting up to 100 percent oured and the value of the gift is not of the deceased’s income in the year of diminished by unsubstantiated expenses death. There is a one-year carry-back or a failure to achieve the maximum for unused credits. A claim may also be value possible in the circumstances. made for any lifetime gifts that were A charitable beneficiary might be relucnot claimed in the five years leading to tant to question executors about estate death. The executor will also allocate the accounts due to public relations concerns. proportionate income from the estate to As a result, sometimes important matters the charitable beneficiary on the T3 tax which should be raised are left unquesreturn. The income is not taxable in the tioned. It is a matter of balancing these hands of the charity. interests in encouraging gifts to charity RECEIVING AND RECEIPTING DIFFERENT while making sure everyone involved is TYPES OF GIFTS fairly paid for the work carried out in the Types of gifts may be treated differ- administration of the estate. ently for the valuation of the gift and the Sometimes, the executor or advisor tax receipt. Here are some examples. may have provided services to the client 1. Specific cash gifts or specific prop- during the client’s lifetime and now seeks erty: Value of cash or property at date of to claim an additional fee. While this is death not generally the concern of the benefi2. Residual bequests: Value at the date ciary of the estate, it may be considered of death by some as a factor in the review of the 3. Securities that are transferred in spe- request for compensation. cie as directed in the Will: Closing value Where the charity is a residual benefias at date of death ciary, it will look to see if the Will is silent 4. Securities that are transferred in about a fee for the executor’s work, if specie at the discretion of the executor there is a provision in the Will for a speto take advantage of the tax savings: cific amount, or if there is a fee agreement Closing value on the date the shares are that was signed by the donor at the time received the Will was prepared. Where the Will is 5. Life insurance policy proceeds where silent, the Trustee Act comes into play. It the charity is beneficiary only: Value of provides for a fee of up to 5 percent of the the proceeds when received gross aggregate value of the estate. 6. Life insurance premiums where the When a charity is reviewing the execucharity is the owner and beneficiary of tor’s accounting, it will consider evidence the policy: Value of the premiums paid of the time, effort and contribution made each year during the donor’s lifetime by the executor and the expenses claimed 7. Direct designations of RRSP and for services provided by other professionRRIF accumulations: Value of the accu- als such as legal, accounting, or property mulations when received appraisal fees. It would be guided by the LEGAL ACTIONS case law and how the courts have viewed The charity as beneficiary of an estate these issues. can find itself involved in a legal action Just like any beneficiary reviewing the
SARA NEELY
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accounting, these are the factors the charity and its advisors will consider. Where the estate is simple with few assets, it will likely approve a fee of less than 5 percent — reserving that amount for more complex estates. While a beneficiary has the right to seek a passing of the accounts before the courts, in the majority of estates the charity and the executor will settle on the compensation once the information is clarified. Given the significant responsibility that the executor is being asked to carry out, deciding on the appropriate compensation for this work is an important matter for the client to review with his or her advisor when the Will is prepared. To avoid the possibility of challenges to the claim for compensation, the client may provide for a specific amount in the Will itself or sign a separate fee agreement when the Will is prepared. ENSURING THE DONOR ’S INTENTIONS ARE MET Once the gift is received and the accounting is settled, it is the charity’s responsibility to ensure the donor’s intentions are met as closely as possible. The gift should be allocated to the purposes described in the Will or other deed of gift—such as the purchase of equipment, funding for a specific research initiative or the development of a new program or service. Where the Will or the deed of gift says the gift is unrestricted or for general purposes, it will be used to support the area of greatest need within the charity. The charity may also refer to notes of conversations with the donor during his or her lifetime and any past record
of gifts to best meet the donor’s intentions for the use of the gift, to decide if the donor’s family should be consulted and to determine how the donor should be recognized for this contribution. The terms of the Will or gift deed are paramount in meeting the donor’s intention; this other information is more for the “softer” stewardship aspects of the gift and the donor. Ensuring the donor’s intentions are met brings us full circle to what the client intended at the outset. Here are some questions he or she may ask in advance when planning the gift. • What do I want to achieve? • Do I want to make a gift for a specific purpose? • Do I want to let the Board of the charity decide what is best? • Do I want my gift to be anonymous? • Do I want my name on a donor recognition wall or listing? • Do I want to make an immediate gift? • Do I want to create an endowment fund so the charity receives a gift every year in my name? It may seem there are lots of questions. What the questions reflect is the opportunity for a donor to work with the charity, the executor, and the donor’s advisors to put in place a gift that is meaningful to the donor and one that will carry out the donor’s legacy for the community. From all perspectives, that is the best result. Sara Neely, LL.B., CFRE is the Director of Philanthropic Services for the Victoria Foundation. Se can be reached at 250-381-5532. The foundation’s webiste is www.victoriafoundation.bc.ca.
Your legacy gift will provide hope and support to women and children. Providing programs and services since 1979: Children Who Witness Abuse, Counselling Services Courtwork, Justice Advocacy, Transition Houses Victim Services, Women’s Outreach, Young Parent Program and Young Babies Services
Prince George & District
ELIZABETH FRY SOCIETY 1575 - 5th Avenue, Prince George, BC V2L 3L9 10729 4407 RR0001
12
Prince George - The
May 2013
Legacy Project - Free Press
www.pgfreepress.com
■ INNOVATIVE CLAUSE
An idea to help charities and estates As with so many other Canadians, Alice But Alice kept thinking about the taxes that Trickett’s life changed forever when she the government might take from her estate. developed breast cancer at age 57. She wanted insurance against this. So, on her Alice grew up in Orillia, Ont. She got mar- own, she created an innovative clause and ried in 1950 and moved to a farm in Alder- attached it to her will as a codicil. The clause grove, B.C. She would have three children instructs her executor to calculate the taxes and live there for most of her life. owing at her death and in the previous year, And while the farm and responsibilities of and to make charitable donations just large motherhood occupied much of her day, she enough to eliminate her taxes. made the extra effort to supThis way, the majority of her estate port many worthy causes in her would pass to her own family, and community by giving financially the government’s share would be and by volunteering her time, replaced with the charities she cared such as at a seniors’ centre in about. Langley. The Canadian Cancer Society recogAfter her diagnosis in 1986, nized that Alice’s strategy – replacing Alice refocused her energy on Alice kept taxes with a gift to charity, without the cancer cause. She became thinking about unduly impacting family and other a door-to-door canvasser, col- the taxes that loved ones – might appeal to many lecting donations to the Cana- the government others, so the society asked Sandra dian Cancer Society for over 20 might take from Enticknap, Partner at Miller Thomson years. LLP, to review and re-word Alice’s her estate. Cancer was to invade her life She wanted codicil with a view to sharing it with again, recurring just two years insurance again the general public. later. Alice underwent another this. The “Estate Tax Eliminator Clause” round of treatment and survived. is now available to all who wish to Sadly, there was more cancer in consider this type of strategy for their her family’s future. Cancer stole will. The Canadian Cancer Society all three of her brothers. Her granddaughter believes that almost anyone can use the Crystal was diagnosed with lymphoma, and clause but cautions that it should not be needed a bone marrow transplant to sur- used without first reviewing with legal and vive. tax advisors its suitability for one’s unique Alice passed away of other causes in 2008, personal situation. but her charitable giving didn’t stop with her To view the Estate Tax Eliminator Clause, death. In planning her estate, Alice’s first pri- go to www.cancer.ca/bc legacy, or contact ority was to take care of her family. She met a Tim Staunton at tstaunton@bc.cancer.ca, lawyer and had her will prepared. 1-800-663-2524 (ext. 299), or 604-675-7111.
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Ph o to s ub mitte d
When Alice Trickett thought of a way to help charities and her heirs at the same time, the idea became a common one.
The Fraser-Fort George Museum Society PO Box 1779, Prince George British Columbia V2L 4V7 Museum and Science Centre
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hap tthe he ffuture uture Your gift wwillill sshape
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