Leaving a gift in your Will: Myths and facts
Here are some commons myths and facts about leaving a gift in your Will. For more information on leaving a gift in your Will to CARE Canada, please contact:
Zeinab Omer, Senior Coordinator, Philanthropy
zeinab.omer@care.ca | 647-914-2156
Myth: My estate has to be large to make an impact
Fact: By including CARE Canada in your estate plan for any amount, you make a lasting impact and a tremendous difference. Your estate may be larger than you think. Non-cash assets, such as life insurance policies and stocks, are often a significant part of your wealth.
Myth: My family knows what I want, so I don’t need a Will.
Fact: Your family might know what you want, but they won’t get to make any decisions for you if you don’t write them down in a Will. Instead, a court will make those decisions based on local laws. And the court process can be long and cost your loved ones a lot of money from your estate.
Myth: The donor must have a Will in order to donate.
Fact: there are various ways to donate using your retirement plan, life insurance, or estate
Myth: Planned giving is too complex and time-consuming.
Fact: A simple meeting with your lawyer, life insurance representative or retirement plan administrator is all you need to leave your legacy
Although you can draft your own Will, we strongly recommend that you use the services of a legal professional. Mistakes in writing or witnessing a Will can invalidate the document. A simple Will does not cost a lot. In general, you can expect to pay between $250 and $600 for a straightforward Will, and $750-$2,500 for a complex Will. Prices vary by region.
Myth: I want to continue making my annual donation and cannot afford to do both.
Fact: We encourage you to use your various assets as platforms to make affordable planned gifts and continue your annual donations. A gift in the Will is eligible for a charitable tax receipt which will reduce the overall tax burden on your estate.
Myth: I am too young to think about making a Will.
Truth: If you have a property (even a car), you have an estate. Documenting your wishes in a Will is an important step at any stage of your life. A Will ensures that your intentions are carried out and it can help establish a plan to receive the best tax benefits for your assets. Most importantly, if you have loved ones who depend on you, your estate plan can protect their future. Your estate plan should describe what you would like to happen in the event you are unable to make medical decisions or take care of your finances. It is the full picture of your wishes and your life’s work.
Myth: Wills are only important if you have a lot of money or property.
Fact: This is false. There are many reasons to have a Will. Wills can do quite a bit more than just name who gets your money and property. With a Will, you can also nominate guardians for your minor children, name caretakers for your pets, leave instructions for digital assets, write your funeral wishes, and more. A Will can also save your loved ones the time, money, and stress of lengthy, expensive probate court proceedings.
What happens if I die without a Will?
A high percentage of Canadians die intestate (without a Will). In these cases, the courts determine who will become the legal administrator of your estate and your assets are usually distributed among family members in accordance with provincial legislation. No matter what you may have verbally indicated, if you have no Will, or if your Will is invalid, your estate is unlikely to be distributed according to your exact wishes.
Can my Will be contested?
A Will can be contested. That’s why it’s always best to talk with your family about your plans. Simply having an open discussion and expressing your wishes to your loved ones ahead of time can help. It is a good opportunity to speak to them about your values, and, if you decide to leave significant bequests to charity, it is a chance to explain why you are passionate about supporting it. If you are in a situation where you want to give to a charity and avoid legal challenges from family members, then you may want to consider a gift of life insurance or making the charity a direct beneficiary of an RRSP or RIF.