Making a planned gift without disadvantaging your family is possible!

October 29, 2021 •  By Centraide
Famille intergénérationnelle

When we think about the future, we want to make sure that our loved ones do not lack anything. Indeed, if you are thinking of writing your will in the near future, or taking out a life insurance policy, the first goal will certainly be to provide for your loved ones and your children first, especially if they are minors, ill or restricted by a particular condition. Bequeathing your assets ensures the financial security of your heirs, and above all, it is your way of showing how important they are to you. However, most of the time their professional, family, and financial situations change, and they need your financial support less and less as the years go by.

How to continue your philanthropic commitment without penalizing your loved ones

Note that the amount of money donated annually to causes that are important to you comes from your current budget. Planned giving, such as a gift in a will, comes from the assets you own. A financial planning professional can help you assess the value of these assets. By knowing your financial and family situation, he or she will ensure that your philanthropic endeavours are part of an overall plan. It will also help you choose the appropriate types of gifts to reduce the tax burden during your lifetime or for your heirs. 

Bequeathing a small percentage of your estate (1 % or 5 %) has very little impact on your heirs and can make a considerable difference to the agencies supported by Centraide of Greater Montreal.

In fact, you may well decide to divide your assets between the cause you cherish and your heirs, allowing everyone to benefit. The recommended wording is: I leave 95 % of my assets to my children/family members/friends, and 5 % to the charity of my choice. This way, if your financial situation changes before your death, your wish to benefit your loved one is respected, and your gift will make a significant difference to the designated cause. In addition, thanks to the charitable receipt, the tax burden on your estate will be greatly reduced, and even eliminated in some cases.

On the other hand, if you do not wish to revise your will, a gift of life insurance may be a good choice. Your heirs can benefit from a tax advantage upon your death, and once again, you are making a significant donation to your favourite charity. Often, your need for coverage diminishes over the years. If this is the case, talk to your insurance broker to see what options are available to you, and increase your philanthropic reach.

Inform your loved ones of your philanthropic endeavors, their reaction may be much more positive than you think.

Why discuss it with your family members

Informing your loved ones of your philanthropic approach is also part of the right thing to do, especially if you are planning for their future and their security. This way, you can explain to them the scope of your choice, while transmitting your values of sharing and mutual aid.

By including a donation to Centraide of Greater Montreal in your will, you are not disinheriting your children or loved ones. You are leaving your values as your legacy. It is a gesture of the heart, a true message of hope for future generations.