A gift (bequest) in your will is a straightforward way to support future generations of Nova Scotians experiencing food insecurity. Often individuals would like to make a gift to Feed Nova Scotia, but are concerned that a cash gift now will leave them short of future income. A bequest is often the best option for making a significant contribution while maintaining future financial security. A charitable bequest to Feed Nova Scotia is a gift made through your will which reduces your taxable estate. Bequests to Feed Nova Scotia are eligible for gift receipts that can be used for tax credits towards final income tax payable in the year of death and the previous year, up to a limit of 100% of your taxable income.

You may specify that your bequest is to be unrestricted – to be used by Feed Nova Scotia where the need is greatest, or restricted – to be used for a specific purpose or to establish an endowment which is permanent and where a portion of the income is distributed each year. A bequest may also be a gift-in-kind such as real estate or works of art. Where the gift-in-kind has appreciated in value, there are special additional tax credits available to you.

There are several ways you can arrange a bequest. Development staff at Feed Nova Scotia can answer any questions you have, and help tailor the right bequest for you. We encourage you to seek the professional advice of a lawyer or financial advisor in helping you determine the most appropriate type of bequest for you. They will also help you to review your assets and liabilities, and ensure that your intended gift will fulfill your wishes. We hope you will tell us when you have named Feed Nova Scotia in your will. We would like to thank you for your generosity.

You can create a personal legacy with a gift in your will that makes a statement about what matters to you through supporting an organization close to your heart.

You retain the full control, value and use of the future gift throughout your lifetime. Your gift is revocable at any time should your circumstances change.

It can be as simple as adding a codicil or clause to your existing will.

You choose the type of bequest that best fits your circumstances and wishes.

SPECIFIC BEQUEST:

You may leave a specified sum of money or piece of property such as real estate, securities and other items from your estate explicitly detailed in a will.

RESIDUAL BEQUEST:

You may leave all or a portion of the residue remaining in your estate after all debts, taxes, expenses and other bequests have been paid.

Tax sheltered plans such as RRSPs and RRIFs offer some creative approaches to charitable giving. Withdrawals from the fund will be taxed. However, if the proceeds are donated the tax credit on the donation will offset the tax incurred on withdrawal.

On your death almost half of your plan, with a few exceptions including a spousal roll-over, will be given to the government through taxes. The alternative is to designate a charitable recipient of the proceeds of your RRSP or RRIF.

By naming a charity as beneficiary of your plan you will not only be supporting a worthy cause but the entire proceeds of the fund will be available to the charity with no net tax cost to your estate. This is because the tax credit your estate receives for the donation will offset the income tax payable on the withdrawal.

Life insurance policies offers flexible and creative ways to support those experiencing food insecurity in our communities and meet your planning needs. As there are many types of insurance products available, consultation with your insurance advisor is highly recommended.

POLICY OWNERSHIP TRANSFERRED

When you transfer ownership of a policy to Feed Nova Scotia, any premiums paid are considered to be a charitable donation for which you receive a tax receipt. The resulting tax credit greatly reduces the cost of the eventual gift of the death benefit that can be many times the actual premium cost.

POLICY OWNERSHIP RETAINED

Alternatively, you may name Feed Nova Scotia as policy beneficiary only. In this case you retain ownership of the policy so a tax receipt is not issued for the annual premiums. However, a tax receipt will be issued for the death benefit resulting in a tax credit that your executor may use on your final return to offset other income tax.

WEALTH REPLACEMENT

You may wish to make a major outright gift today but you may be reluctant as you do not want to diminish your children’s future legacy. One strategy is to purchase a life insurance policy with a face amount equal to the amount contributed to Feed Nova Scotia, with your children named as beneficiary. The policy proceeds, payable at your death will replace the cash asset that is removed from your estate through the donation. In some cases the cost of the policy could be entirely offset by the tax credit from the original donation.

A charitable remainder trust is a legal arrangement allowing you to receive the income from the trust during your lifetime and assign the trust capital as a gift in the future to Feed Nova Scotia. You receive a charitable tax receipt now for the calculated future value of the trust. When creating the trust you will name a trustee to manage the trust. When the trust is terminated, either upon your death or at end of the period of time stipulated by the trust document, the assets are delivered to Feed Nova Scotia.

If you fund the trust with appreciated property there will be a deemed disposition for tax purposes, but the tax credit from the donation receipt often will more than offset the tax owing.