VON and You
A Legacy of Caring
Legacy Gifts
A legacy (or planned) gift is the ultimate way to ensure that the Victorian Order of Nurses Chatham-Kent is there to help your loved ones, friends and neighbours when they need VON care. Legacy gifts also allow you to make a larger contribution than you may be able to at the present time.
For donors planning to give larger amounts, a bequest gift is the ultimate expression of one’s appreciation for the work of VON Chatham-Kent. Bequests or Legacy Gifts give people assurance that their estate will help VON continue to meet the needs of its community for many years to come.
Type of Gifts:
- Bequests: Leaving a Legacy Gift to VON in Your Will
- Charitable Gift Annuities
- Gifts of Insurance
- Gifts of Retirement Benefits
- Trust funds
Bequests: Leaving a Legacy Gift to VON Chatham-Kent in Your Will
A lawyer usually drafts the bequest, which is then settled via the services of the estate executor after the benefactor’s death. Prior to proceeding, it is recommended that the donor seek the services of an experienced estates lawyer to ensure that the bequest is established in the most appropriate way.
Charitable Gift Annuities
A charitable gift annuity is an attractive option for donors wishing to make a planned gift to VON Chatham-Kent. The principal benefit of a charitable gift annuity is that it not only provides the donor with a guaranteed level of income for a set number of years or for life, but it also bestows an immediate gift to VON, all from the same capital source.
A charitable gift annuity works as follows: The donor gives a lump-sum donation with the understanding that VON will provide a fixed amount of income back to them over a specified term or for life. The donor will receive a tax receipt equal to the amount donated minus the cost of the annuity and the donor is taxed on the interest portion of each annuity payment they receive.
Gifts of Insurance
The gift of a life insurance policy during life provides donors with an affordable means to make a large contribution, which in turn has a large impact on those in need in the community.
The donor arranges with VON Chatham-Kent to purchase a life insurance policy based on his or her life. VON is named as the owner of the contract and declared the beneficiary of the contract, ensuring that VON Canada receives the proceeds upon the donor’s death. The donor then makes the regular premium payments that keep the policy “in force.” The proceeds of the policy pass directly to VON after the donor’s death.
Another donation option is to transfer an existing policy to VON Chatham-Kent. In this instance, the benefactor would transfer ownership of the existing policy to VON and name it as the contract’s beneficiary. The donor, in exchange, receives a tax credit based on the cash surrender value of the policy, minus any policy loans, and may have some income to include as the policy is treated as having been disposed of.
Gifts of Retirement Benefits
Individuals are able to leave all or part of their retirement savings to VON Chatham-Kent. Upon the individual’s death, the proceeds of their registered retirement savings plan are paid out to VON. The executor of the donor’s estate will include the full balance of the registered plan in the final tax return of the deceased and will receive a charitable receipt from the charity for the same amount, which may be used on the donor’s final tax return or carried back to the year prior to their year of death.
Trust funds
For individuals wishing to bestow large gifts to VON Chatham-Kent, the establishment of a charitable remainder trust may be an attractive planned giving option, particularly if during their lifetime they would like to secure both income and significant tax relief.
Under the advice and guidance of trust and estates lawyers, a donor is able to establish a charitable remainder trust by transferring property to a trust. Upon this transfer, the donor is considered to have disposed of the property and he/she may realize a capital gain or loss. The trust documents instruct the trustee to pay all of the income earned within the trust to the individual, but requires the property to be transferred to the charity at some later date, which is usually upon the death of the donor. Once the charity is named as the beneficiary of the trust, it cannot be removed or revoked. After the donor’s death, the assets are passed on to the designated charity. If the donor has a spouse, the charitable remainder trust should be set up so that the property passes to the charity only after the death of that spouse.
For more information on planned giving please contact VON Chatham-Kent’s Fund Development and Community Relations Coordinator at 519-352-5515