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Planned Giving
Creating Your Legacy
for the Future
Future gifts to the University include charitable bequests
provided in a will, gifts of new or existing life insurance
policies, and gifts of retirement funds. Although you plan
these gifts now, the University receives them some time in
the future. Knowing about the existence of these gifts gives
us the opportunity to thank you with an invitation to join
the Société 1848 Society.
Gifts that Give Back
You can make a major gift to Saint Paul University and retain
your financial security through retirement with gifts of charitable
remainder trusts, residual interest arrangements and charitable
gift annuities. These are life income plans that provide you
with the opportunity to support the University while preserving
income for you or your family.
Bequest: Why Make a Will?
- When you die, everything you own will be transferred
to others.
- You work hard all your life to accomplish a nice life
for your family, self and community — you invest time
and money to make things the way you feel they should be.
It is important to decide where you want your belongings,
or “estate”, to go, such as to family members,
friends, and organizations that you wish to benefit.
- You will want to express who should look after your minor
children (guardian).
- You will want to express who should look after your “estate”
or be your executor (or liquidator, in Quebec).
- A will may reflect your values in life and enable your
work to continue after your death.
- In a will you can make statements but have the ability
and right to change them as necessary.
- Provides financial security for loved ones and avoids
high administrative costs associated with intestacy (dying
without a will).
- Avoids delay in processing your estate and even more
hardship on your family.
- Allows you to make a meaningful contribution to Saint
Paul University and other organizations in which you have
an enduring interest.
- Will minimize taxes and administration costs.
What Happens Without a Will?
- You die “intestate”.
- Your belongings are distributed according to provincial
intestacy laws.
- Your minor children may not be placed with the guardian(s)
you would have chosen.
- Your next-of-kin must apply to the courts to be your
executor or liquidator.
- Your choices or wishes are not considered.
- The earnings of a lifetime could easily be depleted by
taxes and unnecessary administration costs.
- There will be no donation to Saint Paul University or
other favourite charitable organization.
The following will happen to your assets or “estate”
if you do not have a will in place.
- If you are survived only by a spouse, 100% will go to
your spouse.
- If you are survived only by your children, 100% will go
to your children.
- If you are survived by a spouse and one child, the first
$200,000goes to your spouse, and the rest is split equally.
- If you are survived by a spouse and children, the first
$200,000 goes to your spouse, 1/3 of the rest goes to your
spouse, and 2/3 of the rest goes to your children.
Gift of Life Insurance:
A gift of life insurance is a surprisingly easy way and,
for many, the only way to make a substantial gift to Saint
Paul University.
Below are listed three ways that a donor may give life insurance
for the benefit of Saint Paul University:
- Gifting an existing paid-up policy by changing the owner
and beneficiary to Saint Paul University. The donor will
receive a tax receipt for the full cash value of the policy,
plus any accumulated dividends.
- Gifting a policy on which a donor is still paying premiums
and names Saint Paul University irrevocable owner and beneficiary.
The donor will receive a receipt for the cash surrender
value, if any. Further, as premiums come due and are paid,
receipts for the amount of the premiums will be issued to
the donor.
- Designating Saint Paul University in a donor's will to
receive the proceeds of a policy. In this type of format,
the donor would not benefit from a tax receipt in his/her
lifetime. However, in the future, when Saint Paul University
receives the proceeds of the policy and if the policy is
specifically mentioned in the donor's will, Saint Paul University
will issue a tax receipt which will benefit the donor's
estate. (Tax credit of up to 100% of net income in the year
of death and year preceding death.)
Benefits:
- Life insurance is not subject to probate costs or administrative
costs as the proceeds pass outside of a donor's estate.
Having said this, from a tax perspective, since March 1996
it is now more advantageous to consider making your estate
the beneficiary of the proceeds of a policy and making a
bequest to your favourite charity. The tax receipt will
more than likely offset any probate or administrative fees
due on death.
- Irrevocable gifts of life insurance cannot be contested;
the gift is guaranteed.
- For a relatively small tax-deductible investment —
monthly, annual or lump sum premium payments(s) —
a donor can make a major gift to Saint Paul University.
- The proceeds of an insurance policy can be designated
for a specific purpose, i.e. scholarships/bursaries, Faculty
of Theology, etc.
- Saint Paul University receives the insurance proceeds
while the donor still ensures that other beneficiaries receive
the full value of the donor's estate.
- Depending on the amount of coverage, an irrevocable gift
of life insurance would allow a donor to benefit from both
the knowledge of guaranteeing a gift in the future while
receiving donor recognition through the Saint Paul University
Recognition Program.
Charitable Trusts
Saint Paul University may accept two types of irrevocable
charitable trust arrangements:
- A remainder trust that pays the donor income from the
assets (i.e. real estate, securities, cash) for life or
for a number of years, and then distributes the principal
to SPU;
- a residual trust whereby an asset (personal residence,
work of art, investment property) is donated today, but
the donor retains the use of it during his/her lifetime.
Reinsured Charitable
Gift Annuities
A gift annuity is an irrevocable transfer of money or other
assets to Saint Paul University. A portion of the principal
is used to purchase an annuity from an insurance company.
The cost of the annuity is based on the donor’s age
and income requirements. The remainder of the principal is
considered an outright gift used for the purpose specified
by the donor. The annuity pays the donor a guaranteed income
for a specific time or for the remainder of the donor’s
life. Upon the donor's death, SPU receives any remaining guaranteed
income from the annuity, unless the donor has specified otherwise.
For information, contact Daniel G.
Clapin, ACFRE, Director, Alumni and Development Office.
Charity Life Direct
We participate in the Charity
Life Direct insurance program.
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