A planned gift to Mount Allison is a way for you to be actively engaged in providing support to areas that mean the most to you.
You can choose the priorities that reflect your intentions and values, including areas such as student scholarship, athletics and recreation, academic faculties, and buildings.
Planned giving is a careful consideration one makes during his or her lifetime for the future benefit of others. At Mount Allison, it provides an opportunity to leave a lasting legacy for the benefit of future generations of students. Apart from sound financial planning, planned giving also provides personal tax incentives to help meet your philanthropic goals.
While we invite you to discuss your estate wishes with a financial planner, the following information can help get you started.
Many of Mount Allison's benefactors choose to have their contributions used to establish an endowment fund, with the income used to support a specific designation in perpetuity.
Unrestricted endowments allow Mount Allison the flexibility to create funds that best meet the current and future needs of the University, while restricted endowments allow you to choose the priorities that reflect your intentions and values, such as student scholarships, athletics and recreation, academic faculties, and campus buildings.
Planned through your will, a bequest is not paid to Mount Allison University until after your death.
Careful planning may enable you to reduce federal and provincial income and probate taxes. Your estate may be able to claim bequests equal to 100 per cent of the net income on your final two tax returns, thus eliminating all the taxes payable on death.
Designations of bequests are revocable, giving you control of assets during your lifetime while supporting a priority that will define your legacy at Mount Allison.
A specific bequest occurs when you designate a fixed dollar amount or specific property to Mount Allison
A residual bequest occurs when you designate a percentage of your estate, which may adjust as your estate increases or decreases over the years.
A contingent bequest occurs when Mount Allison becomes a beneficiary in the event of the death of the primary beneficiary named in your will.
A testamentary trust is a provision in your will that assures the long-term fulfillment of your wishes and provides for the needs of others in your family, while retaining the capital to provide your legacy to Mount Allison.
There are many ways to donate using life insurance. You may choose to surrender an existing policy, purchase a new policy, or simply designate Mount Allison as the beneficiary of your policy.
A planned gift of life insurance can either save you tax dollars today, meaning immediate tax relief, or your estate can receive a tax credit for the face value of your policy. You can contribute significantly to future research, student programs, and services, while paying small premiums now.
Donating through your estate is the least expensive way to make a gift of appreciate, publicly-listed securities such as stocks, bonds and mutual fund units. You will receive a charitable tax receipt for the fair market value of your donation and the taxable capital gains are reduced by a further 50 per cent.
Securities are equally tax-efficient when given today or in the future through a bequest.
Charitable remainder trust
A charitable remainder trust enables you to give today and create immediate tax savings as you retain the income or continue to make use of the donated asset.
An irrevocable charitable remainder trust provides you with an immediate tax receipt for the present value of the donated asset and annual income from the asset in trust.
A revocable charitable remainder trust provides your estate with a tax receipt when assets are provided to Mount Allison.
Charitable Gift Annuities
Charitable gift annuities are ideal for donors who want to make a significant gift during their lifetimes, yet need to maintain an income for retirement. Gift annuities are one of the benefits of age; the older you are, the higher the annual payments will be.
A significant portion, if not all of the income, from a gift annuity is tax-free. In some cases a donation receipt is issued, resulting in further tax savings.
Gifts of residual interest
A gift of residual interest is irrevocable and usually takes the form of property or works of art. The donor retains the right to make use of the asset for the remainder of his or her life.
Retirement plan assets
Another thoughtful way to leave a lasting legacy to Mount Allison is to designate the University as a beneficiary of an eligible retirement plan. If you are enrolled in a RRSP or have already converted your RRSP to a RIFF, you can name Mount Allison as a beneficiary.
Your executor will receive a charitable tax receipt in your name for the fair market value of your remaining RRSP or RRIF at the date of your death to be used in your individual tax return for the year of death and/or the immediate preceding years.
While alive, you continue to be entitled to receive income from the RRSP or RRIF, even though Mount Allison is named as beneficiary.
**Before considering any of the above giving options, we recommend you speak with your financial planner to ensure you are aware of any costs incurred by your estate, and that you are ultimately able to meet your long-term goals.