The Benefits of Naming a ‘Good Cause’ in Your Will
Naming a not-for-profit in your Will is the simplest way that you can leave an altruistic legacy. With a not-for-profit beneficiary, you will be remembered after your death for the values that you held dear during your lifetime. You will feel good knowing that you will be making a significant and lasting difference to causes that you care about.
Your charitable gift(s) can be in the form of a fixed amount or it can be a percentage of what is left after tax and other costs have been paid. If your beneficiary is a register not-for-profit organisation, your estate will receive a charitable gift receipt in the amount of your gift which will offset taxes owing on your estate. The charitable tax receipt can be applied up to 100% in the year of death and in addition, carried back one year.
You may feel concern that heirs will receive less if charity is named in a will. Your family and others who depend on you should always be first. However, because tax is almost always owing in an estate, through income and/ or capital gain, a charitable receipt can offset tax owing and quite simply re-direct some or all of the money in the estate that would go to tax.
Your advisor(s) can help you decide if this is best for you. It is recommended when drawing up your Will, that you consult a legal advisor who can ensure your final wishes are met. We always recommend that you discuss your plans with your family so that they are fully aware of your wishes.