Planned Giving

A Gift in your Will

Many Canadians support charitable organizations through future gifts from their estates. A Charitable Bequest is a direction in your Will that instructs your Executor(s) to leave one or more of your assets to (a) charitable organization(s).

A charitable Will Bequest is a way to support Campbellford Memorial Hospital Foundation while helping you achieve significant financial benefits and tax savings for your estate, allowing you to make a significant donation upon your death that you may not have been able to make during your lifetime. Your estate will receive a tax receipt, which is applied to the final income tax return. A Charitable Bequest is a meaningful way to reduce your taxes and increase inheritances to your loved ones.

Will Planning Guide (Click Here)

How you Benefit from a Charitable Bequest

• CONVENIENT: A Will bequest can be made no matter how old you are and can be for any amount you want.
• SIMPLE: A bequest is easy to arrange. Simply ask your lawyer to include a bequest to Campbellford Memorial Hospital Foundation in your Will.
• FLEXIBLE: Your bequest can be a specific amount, a percentage of your estate or the residue of your estate — that is a gift after your debts have been paid and other bequests made.
• COST-EFFECTIVE: There are no extra out-of-pocket costs. Your present income will not decrease.
• TAX RELIEF: A bequest is the only effective method to reduce estate taxes.
• TAX PLANNING: Campbellford Memorial Hospital Foundation will issue a tax receipt for the full value of your bequest. This receipt will be used to reduce the tax payable on your final tax return. If your bequest exceeds 100% of your net income, the excess may be carried back to the previous tax year.
• CONTROL: You retain use of the charitable gift for the duration of your lifetime.
• PEACE OF MIND: You can make changes in your Will at any time.
• SATISFACTION: Planned gifts are made for personal reasons, in addition to ensuring that Campbellford Memorial Hospital Foundation continues to serve your local community, your bequest can symbolize a lasting memorial for you, your family or anyone you may wish to honour.

Please seek expert advice.

Campbellford Memorial Hospital Foundation recommends that you consult your lawyer or estate planner regarding the specific wording of any charitable Will bequests. For sample charitable bequest clauses, please call John Russell at 705-632-2014.

A Gift of Life Insurance

A gift of Life Insurance is a simple and easy way to support Campbellford Memorial Hospital Foundation while allowing you to make a significant gift that you might not otherwise be able to give. In addition, you can make a gift of either a new or existing policy.

How to Benefit from a Life Insurance Gift

• SIMPLE AND CONVENIENT: The transaction is simple. Your life insurance agent can advise you on the type of policy that would best fit your needs, custom design your program and carry through with the necessary paperwork.
• INEXPENSIVE: A way to make a larger gift than you might otherwise be able to, without depleting your current assets now or your estate later.
• LEVERAGE: The ultimate value of your policy will be far more than the premiums you pay.
• SAVE TAXES TODAY: Immediate tax relief in the form of the charitable tax receipts.
• ESTATE PRESERVATION: Your estate to your family is not diminished because life insurance by its very nature creates an additional, separate “estate”.
• ELIMINATES PROBATE, LEGAL, AND EXECUTOR FEES: Life insurance is not subject to probate costs or delays in settlement. The full proceeds are payable to Campbellford Memorial Hospital Foundation at maturity or your death.
• PEACE OF MIND: You can plan, arrange and announce the gift yourself and you will know that it will occur just as planned.
• CONTROL: Life insurance is not a matter of public record, allowing you to remain anonymous. And unlike a Will, the gift cannot be contested.
• RECOGNITION: You and your gift can be honoured during your lifetime.

Easy Ways to Make a Gift of Life Insurance

1. You can take an existing policy that has finished serving its original purpose and simply have the ownership and beneficiary designation transferred to Campbellford Memorial Hospital Foundation. This designation cannot be changed. A charitable tax receipt will be issued for the worth of the policy at the time of transfer. Any continued premium payments also qualify for a charitable tax receipt. There are tax advantages to retaining your current policies. Campbellford Memorial Hospital Foundation strongly recommends that you discuss this matter with your insurance agent before any transfer takes place. However, you will not receive a tax receipt for any premiums paid, and your estate will not be issued a tax receipt. Revenue Canada has ruled that ONLY when the charity is owner and beneficiary of the Life Insurance Policy, can a tax receipt be issued.
2. You can purchase a new Life Insurance Policy. After one premium payment has been paid, Campbellford Memorial Hospital Foundation is named as the owner and beneficiary. You continue to pay the premiums and receive a charitable tax receipt for those payments. Again, this designation cannot be changed.
3. It may be to your advantage to name your estate as the beneficiary of your life insurance policy, and then make a same dollar amount bequest in your Will to Campbellford Memorial Hospital Foundation. You will not receive a tax receipt for any of the premiums paid during your life. However, your estate will be eligible to claim a donation for the full amount of the insurance proceeds.
4. You can name Campbellford Memorial Hospital Foundation as your beneficiary only on your individual or group life insurance. You retain ownership of the policy. You can change the beneficiary designation at any time. If you are a salaried employee and have a benefit plan that has a death benefit component to it, consider naming Campbellford Memorial Hospital Foundation as the beneficiary.

Please seek expert advice.

A life insurance agent should review in detail what would best fit your needs. Before considering a planned gift of Life Insurance, you should already have satisfied any need for Life Insurance for the protection of your family. For further information, please call our office at 705-632-2014.

Charitable Remainder Trust

A Charitable Remainder Trust is a way of giving assets to Campbellford Memorial Hospital Foundation through a trust agreement. A Charitable Remainder Trust can be established by contributing bonds, stock securities, mutual funds or real estate to a trustee who holds and manages it. You may chose a Charitable Remainder Trust because you have an asset that you would eventually like to give to Campbellford Memorial Hospital Foundation, but you need the income it now provides, or you do not wish to part with your asset right now.

How you Benefit from a Charitable Remainder Trust

• INCOME: Your trust can provide you with a lifetime income.
• TAX ADVANTAGES:
  • A tax receipt is issued upon transferring assets to a trust that names Campbellford Memorial Hospital Foundation as the capital beneficiary.
  • The five year carry forward provision allows effective tax planning today rather than the one-year carry back upon death.
  • Beneficial treatment of capital gains: If appreciated property is donated to the trust, only those gains attributed to the residual interest are recognized.
  • The capital gains are “frozen” and are dealt with at today’s value.
• WORRY FREE MANAGEMENT: Your trust can be managed professionally, freeing you from daily investment decision or market concerns.
• ELIMINATES PROBATE AND ESTATE FEES: Your gift is not subject to probate fees and other estate costs.
• AVOID WILL CHALLENGES: Trust assets are not considered part of your estate.
• PROTECTS PRIVACY: By transferring assets to a trust, your decision is private.
• CONTROL: The trust retains your assets until death, at which point Campbellford Memorial Hospital Foundation will receive the “remainder” of the property in the trust.
• RECOGNITION: You and your gift can be honoured during your lifetime.

How does a Charitable Remainder Trust Work?

You receive a donation receipt for the present fair market value of the remainder interest calculated by a Revenue Canada formula that takes into account your life expectancy and the present value of the property being transferred into the trust. Valuations are required to determine a value of the remainder interest.

Costs of a Charitable Remainder Trust

The total cost of setting up and administering the trust must be weighed against the future reduction of tax and other benefits before creating a trust. The assets within the Charitable Remainder Trust should be worth at least $150,000 to offset any fees. The fees are tax deductible.

Other Important Information

The transfer of assets to the trust is irrevocable, that means you cannot change it once the transfer is completed; The amount of the tax receipt is determined by a formula set down by Revenue Canada, which takes into account your life expectancy and the present value of the assets; Valuations are required to define a value to the remainder interest.

Please seek expert advice.

If you are thinking about transferring assets that have appreciated in value, you should seek expert advice from a tax specialist or financial planner. Campbellford Memorial Hospital Foundation strongly recommends professional advice to ensure that your financial goals are considered, your tax situation reviewed, and your planned gift is tailored to your circumstances. For further information, please call John Russell at 705-632-2014.

Annuity

A Gift Plus Annuity allows you to make gift to support Campbellford Memorial Hospital Foundation while at the same time receiving a guaranteed, predetermined income for life that can be tax-free. It is an ideal choice for donors who may be concerned about the amount of tax that they are now paying.

How you Benefit from Gift Plus Annuities

Annuities are high quality, guaranteed investments that provide regular payments to you and/or your spouse.

• IMMEDIATE GIFT: A Gift Plus Annuity enables you to give a lump sum to Campbellford Memorial Hospital Foundation for immediate use.
• TAX FREE INCOME: Each payment is a blend of capital and interest – the capital portion of your payment is non-taxable. The blend is structured so you pay very little or no tax.
• HIGH RETURN: A Gift Plus Annuity can provide you with a higher rate of return than those available on similar investments such as guaranteed investment certificates or Canada Savings Bonds.
• INSURED: The Canadian Life and Health Compensation Corporation insure your payments, which guarantee annuity payments up to $2,000/month in the event of an insurance company failure.
• WORRY FREE: You are free from investment management concerns.
• FLEXIBLE: You can purchase an annuity now and defer the payments to a later date.
• CONVENIENT: You choose the payment structure that suits you – monthly, quarterly, annually and your payment can be deposited directly into your bank account.
• TAILORED: Campbellford Memorial Hospital Foundation works with financial advisors to explore the variety of options available in the marketplace and ensure that your gift is set up to meet your needs.
• REPUTABLE: After the details of the annuity have been decided, Campbellford Memorial Hospital Foundation purchases the charitable annuity from a reputable commercial institution on behalf of you, the donor.

Please seek expert advice.

Working out the terms of a charitable gift annuity requires financial planning advice. The size of the annuity and your age are used to calculate the size of your payment. For further information, please call our office at 705-632-2014.

A Gift of Real Estate

A gift of Real Estate allows you to give an immediate gift and receive an immediate tax receipt for the fair market value of the property. Gifts of Real Estate include principal residences, farms, land and commercial property. Giving a gift of real estate allows you to simplify your estate and give to Campbellford Memorial Hospital Foundation during your lifetime. This type of gift may appeal if you are looking at ways to reduce your income tax now and are not in need of the dollar proceeds of the sale.

How you Benefit from Gifts of Real Estate

• OPPORTUNITY: You may not have liquid assets to fund a gift, however may have property. The property can be donated allowing you to make a larger gift than could be made out of cash flow.
• TAX ADVANTAGES: You receive a charitable tax receipt, thereby increasing after tax income. The five year carry forward provision allows effective tax planning today rather than the one-year carry back upon death. If your principal residence is given, no capital gains tax is triggered. However, a charitable tax receipt will be issued by Campbellford Memorial Hospital Foundation for the full fair market value of the property.
• RECOGNITION: You and your gift can be honoured during your lifetime.
• REDUCTION OF FEES: Your asset has been removed from your estate thereby decreasing probate fees upon death.

How Does It Work?

Campbellford Memorial Hospital Foundation begins the valuation process. An independent appraiser must appraise the property. After the fair market value is determined, you sign and deliver a deed transferring the property to Campbellford Memorial Hospital Foundation. A tax receipt is then issued for the fair market value as of the day on which the transfer takes place.

Please seek expert advice.

If you are thinking about transferring assets that have appreciated in value, you should seek expert advice from a tax specialist or financial planner. Campbellford Memorial Hospital Foundation strongly recommends professional advice to ensure that your financial goals are considered, your tax situation reviewed and your planned gift is tailored to your circumstances. For further information, please call our office at 705-632-2014.

A Gift of an RRSP’s & RRIF’s

Donating Registered Assets such as a Registered Retirement Savings Plan (RRSP) or a Registered Retirement Income Fund (RRIF) allows you to create a legacy for Campbellford Memorial Hospital – once your needs and those of your loved ones have been met. Donating to Campbellford Memorial Hospital Foundation all or part of an RRSP or RRIF is an effective way to reduce the taxes payable by your estate and help us care for thousands of patients each year, including your friends and loved ones.

If you die without a surviving spouse or qualifying dependants, the full remaining value of your RRSP or RRIF is added to your income in the year of death, and your estate must pay the taxes. RRSPs and RRIFs often create large tax liabilities for a taxpayer in the year of death, since the entire amount of the plan is included in the taxpayer’s income in one year. If your RRSP or RRIF has a registered charity as the direct beneficiary, your estate will receive a donation receipt for the entire value of the plan. The credit arising from this donation will offset the tax liability. As a result, the entire value inside an RRSP or RRIF can be given to a registered charity in the year of death with no tax implications. A gift of an RRSP or RRIF may enable you to fulfill the dual goals of supporting Campbellford Memorial Hospital Foundation while reducing the amount of taxes that your estate would otherwise have to pay.

 

Gifts of Registered Assets – The Benefits to You

• TAX ADVANTAGES: Tax-effective means of supporting Campbellford Memorial Hospital Foundation. Your estate may claim gifts in the years of your death equal to 100% of your net income in that year and the preceding year. RRSPs and RRIFs become fully taxable as income in the year of death, usually at the highest marginal tax rate, unless the funds can be rolled over to a surviving spouse or a dependant child.
• CONTROL: You retain the use of the investment for the duration of your lifetime.
• SIMPLE: Easy to arrange. Simply ask your financial institution to change the beneficiary designation to Campbellford Memorial Hospital Foundation.
• FLEXIBLE: The designation is revocable and can be changed if your financial circumstances alter.
• COST EFFECTIVE: There are no extra out-of-pocket costs.
  Eliminates Probate, Legal and Executor Fees – Your gift will not be subject to probate costs or delays in settlement. The full proceeds are payable to Campbellford Memorial Hospital Foundation upon your death.
• PEACE OF MIND: You can plan, arrange and announce the gift yourself and you will know that it will occur just as planned.
• CONTROL: Not a matter of public record allowing you to remain anonymous. And unlike a Will, the gift cannot be contested.
• MEMORIALIZE: Your bequest can create a lasting memorial for you, your family or anyone you may wish to honour.
• OPPORTUNITY: An opportunity to make a significant gift.
• RECOGNITION: Your gift can be honoured during your lifetime.

Donating Registered Assets: How does it work?

There are two ways to donate the proceeds of an RRSP or RRIF:

1. You can name Campbellford Memorial Hospital Foundation as the direct beneficiary of your RRSP or RRIF. Upon your death the proceeds will be paid directly to Campbellford Memorial Hospital Foundation without going through probate.
2. You can name your estate as the beneficiary of your RRSP or RRIF and leave instructions in your Will to donate all or part of your RRSP or RRIF to Campbellford Memorial Hospital Foundation. You may specify a percentage of the RRSP or RRIF or a specific dollar amount to be donated. The donation qualifies for the charitable Will bequest donation tax credit for up to 100% of income in the year of death and in the year preceding. Note: The trustee of your RRSP or RRIF will withhold taxes and probate will apply when choosing this option.

Example:*

Mary is 72 years old. Her family has been treated at Campbellford Memorial Hospital for many years, and after her husband passed away, Mary wanted to donate a significant gift to the Hospital, but at the same time provide for her family. She made other provisions for her children and grandchildren, but realized that her $100,000 RRIF would be reduced by almost half if she left it to her family. Instead, Mary and her family decided to change the beneficiary of her RRIF to the Campbellford Memorial Hospital Foundation. By doing so, Mary knows she will make an impact at the hospital with her gift, while at the same time receive a charitable tax receipt to her estate and offset estate taxes. Her donation will support the purchase of life-saving patient care equipment at CMH, where local patients can continue to receive the best possible treatment and care.

*For illustrative purposes only

Please seek expert advice.

When considering a planned gift, it is important to assess your overall financial circumstances. Therefore, it is important to consult your financial advisor when making a planned gift so you can choose a strategy which best provides you or your estate with the largest tax savings while fulfilling your charitable goals. Campbellford Memorial Hospital Foundation strongly recommends you seek professional advice to ensure your financial goals are considered, your tax situation reviewed and your planned gift is tailored to your circumstances. Thank you for your interest in supporting Campbellford Memorial Hospital Foundation.

For further information, please call John Russell at 705-632-2014 or email at jrussell@cmh.ca .