Gift in the will

A gift in the will to the QEII Foundation is considered a charitable donation and qualifies for a tax credit that may offset income taxes owing on your client’s final tax return.  Excess credits may be carried back to the previous year’s return.  The donation limit is 100 percent of the net income on the final two lifetime tax returns. The donation limit for estates is 75% of net income. 

The gift is considered fulfilled when the charity receives the funds, not at the time of death.  The tax receipt will therefore reflect the value of the gift at that time.   Additionally, under the rules regarding graduated rate estates (GRE), credits may also be claimed in the year the gift is made or in an earlier year of the estate.  Once the GRE ends after 36 months, there are an additional two years in which to claim a gift.  Theoretically the executor has up to 7 years in which to claim the charitable tax credit.

• A will is revocable during client's lifetime
• Tax credit for use in final two lifetime income tax returns against 100% of taxable income, and up to five years following death for up to 75% of net income.
• Satisfaction of providing for a future gift while retaining full control of property during lifetime
• The possibility of arranging a gift much larger than possible during lifetime

If your client wishes to designate a gift for a particular area of healthcare at the QEII, they should be encouraged to make the designation as broad as possible.  A power to vary clause is essential to ensure the gift will be continue to be viable in the future.  Please encourage your client to speak with a charitable giving advisor to discuss appropriate designations.