Bequests are another way to help
Making a will means making a decision to contribute to the well-being of our loved ones. But a will can also be used to contribute to causes that are close to our heart.
What are the advantages of bequests?
- It costs you nothing in the present, since the gift will take effect only upon your death.
- Making a charitable bequest makes it possible to reduce taxes due at death.
- A bequest can be a gift of money, securities, mutual funds, art, real estate, etc. The decision is up to you.
FAQs
- What are the steps to take in drawing up my will?
The first step is to make a list of all your personal belongings (your assets) of major value. Then, you should name the persons and causes you wish to bequeath to. Once you’ve made those decisions, it is strongly recommended that you discuss the matter with a lawyer or notary who will draft your last will and testament. - Once a notary or lawyer has drafted my will, can I change its content?
Yes. You can change your will at any time, either by making a new will or by adding an amendment to your current will (a “codicil”). - Is it true that upon my death, my succession will have to pay taxes as if I had sold all my assets on the day I died?
Yes, that is what is called “deemed disposition”. However, there are exceptions to that rule. A tax expert can provide you with a list of such exceptions. - What are the tax benefits of making a bequest?
A bequest entitles your estate to get a charitable tax receipt that can be entirely deducted from taxes to be paid for the year in which the death occured. Any unused portion of such charitable tax receipt can be claimed on the income tax paid the year before death occured.
I’ll be happy to answer any question you may have about bequests.
Judith Pinsonneault, lawyer
Legal Advisor
judith.pinsonneault@leger.org
(514) 495-2409, ext 121
