Creating a Legacy: The Importance of Wills and Charitable Giving During Ontario’s ‘Make a Will Month
Author: Sarah Shipley, Jenkins Newman & Shipley Law Professional Corporation
According to a 2023 survey conducted by the independent research foundation Angus Reid Institute, only 50% of Canadians acknowledge having a will. For people under the age of 35, that number drops even further – four-in-five Canadians younger than 35 say they don’t have a will. The unfortunate truth is that these statistics haven’t changed much over the past ten years.
November is “Make a Will Month” in Ontario. The Ontario Bar Association (“OBA”) started this initiative several years ago to educate and encourage the public about the importance of estate planning. It is an opportunity for OBA members, like myself, to help the public understand the importance of having a will and having it done with the advice and assistance of a lawyer.
As part of this annual initiative, the OBA offers free public information sessions throughout the month in communities across the province. I give kudos to the OBA for their marketing strategy; they have created some clever posters to promote their initiative. I encourage everyone to visit www.oba.org/MAWM/Home and check it out.
Since 2020, the laws in Ontario regarding wills and taxes on death have evolved dramatically. Meeting with a lawyer to discuss your specific needs and circumstances when preparing a will and power of attorney is essential to navigating the ever-changing legislative landscape. No one intends to leave behind a mess, but that is often what can happen when there has been little or no estate planning whatsoever.
For more than a decade I have focused my legal practice on matters related to wills and estates, including estate planning. I am frequently asked by clients how they can reduce taxes when transferring assets on their death. A planned gift to a charity of your choice, such as the Bowmanville Hospital Foundation, is a way to do just that!
You can include a charitable gift in your will simply by naming a charity as a beneficiary to receive a set sum, shares, or other property under your will. For example, your will could provide a legacy to a charity for a particular sum for general purposes (eg., “the sum of $10,000 to BHF”) or for a specific purpose (e.g., “the sum of $10,000 to BHF to be used to purchase equipment”).
It is also possible to name charities as beneficiaries on life insurance policies, registered accounts such as RRSPs, TFSAs, and Segregated Funds.
In each case, the charitable receipt issued for the gift will reduce the estate’s tax liability. This is especially the case when assets have accumulated significant growth over the span of the donor’s lifetime.
When you think about the word “legacy” and what it means to you, does your mind wander to your children and grandchildren and the memories they will have of you for the remainder of their lives? Or does your mind wander further in time, to a legacy that lasts centuries? If it’s the latter, planned giving may be for you!
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About the Author
Sarah grew up in Durham and lived in the Whitby area for over 20 years, but now lives in Clarington.
Sarah obtained her law degree from the University of Essex in Colchester, England in 2006 and was called to the Ontario bar in 2009 and has restricted her practice to Wills and Estates since 2011 when she joined Jenkins & Newman.
Memberships and Affiliations:
- Durham Region Law Association;
- Council to the Ontario Bar Association;
- Executive member of the Ontario Bar Association’s Sole, Small Firm and General Practice section; and
- Volunteer with Durham Region Youth Justice Committee (2007 – 2016).