Bequests are the most popular form of planned giving. They are simple and convenient to arrange. There are several options available to donors, including:
Specific bequests: Designated amount of money or asset;
Residual bequests: All or part of what remains of an estate after other legacies and liabilities have been paid;
Universal bequests: Total estate, often divided among multiple beneficiaries.
Designation of a contingent beneficiary in case the primary beneficiary does not survive the donor;
Designation of an RRSP, RRIF, pension plan or life insurance beneficiary.
You may decide to direct your gift to a specific purpose. If no such instructions are given, the Foundation will decide how to allocate the gift to serve the School’s best interests.
As of January 1, 2016, gifts by will are no longer considered to be made by the donor prior to death. Instead they are deemed to be made at the time the property is transferred to the charity.
The executor (liquidator) may therefore opt for the best solution for the donor and the estate.
You should know that there are mechanisms for transferring property assets between spouses that do not involve any tax consequences. You can therefore leave your entire estate to your spouse tax-free. However, if you do not have a spouse or your spouse predeceases you, the tax burden on your estate can be very heavy, as all assets will be deemed to be disposed of at fair market value.
After you have finalized your will, it is still recommended that you review the provisions from time to time, especially after a major change in your personal or family life or your financial situation.
The HEC Montréal Foundation does not provide financial or legal advice. The examples used here are for illustrative purposes only. Please consult your financial or legal advisor to ensure that the selected donation option takes into account your specific circumstances as well as all applicable legal and tax implications.
Questions about planned giving?
Mireille Lafond HEC 1979 Major and Planned Gifts Advisor