Leaving a Gift in Your Will: A Plain-Language Guide to Legacy Giving and Estate Planning

A gift in your will, sometimes called a bequest or a legacy gift, costs nothing today and can be the largest gift most of us will ever make. This guide explains how charitable gifts in wills work in Canada, what a good will needs to cover, and how to include the Nova Scotia Firefighters Benevolent Fund if you choose to.

Why Estate Planning Matters

A will is the document that says what happens to everything you own when you die. It names an executor to carry out your wishes, sets out who inherits what, and can name a guardian for children under 18. If you die without a will, Nova Scotia's intestacy rules decide who inherits, and the result may not be what you would have chosen. Charities are never included under those rules, so a gift to a cause you care about only happens if you put it in writing.

Most people review their will after a big life event: marriage or separation, the birth of a child or grandchild, a move, retirement, or a change in what they own. If your will is more than a few years old, it is worth a fresh look.

The Ways to Leave a Gift to Charity

There are several ways to make a charitable gift through your estate. Your lawyer can tell you which fits your situation best.

• A specific gift (pecuniary gift): a fixed sum of money, such as $5,000, left to a named charity.
• A share of the residue (residual gift): a percentage of whatever remains of your estate after debts, taxes and specific gifts are paid. Many people prefer this because it keeps its value as your estate changes over the years.
• A specific asset: a particular item, such as securities or property.
• A designation gift: naming a charity as the beneficiary of a registered plan or policy, such as an RRSP, RRIF, TFSA or life insurance policy. These gifts pass outside the will, directly to the charity.
• A conditional gift: a gift that takes effect only if another beneficiary dies before you, for example.

How Estate Donations Are Treated for Tax

In Canada, a gift made by will or by beneficiary designation is treated as a donation by your estate. Under current rules, the donation tax credit can generally be claimed by the estate, or applied to your final tax return or the return for the year before, where the usual donation limit rises to 100 per cent of net income. For many estates this can substantially reduce the tax owing on death.

This is general information, not legal or tax advice. The Canada Revenue Agency's guide P113, Gifts and Income Tax covers estate donations in detail, and an accountant or estate lawyer can confirm what applies to you.

Why Leave a Legacy to Nova Scotia's Firefighters

Firefighters spend their lives looking after the rest of us, most of them as volunteers. When an active Nova Scotia firefighter or their family faces a sudden crisis, such as an injury, a serious illness or the loss of their home, the NSFBF steps in with fast, confidential support through our Immediate Need, Ongoing Need and Extraordinary Need programs. We receive no government funding and the fund is run entirely by volunteers.

A legacy gift is a way of standing behind those firefighters long after you are gone, and of saying thank you to the people who answered the call for your family and your community.

Sample Wording for Your Will

If you decide to include the NSFBF, your lawyer can adapt wording like this:

If you have already included the NSFBF in your will, we would be grateful to know. It helps us plan, and it lets us say thank you. You can reach us in confidence at [email protected] or (902) 536-1901.

A Few Practical Tips

• Use a lawyer. A will that is unclear or improperly signed can be challenged. The cost of having one drawn up properly is small compared to the cost of getting it wrong.
• Use the charity's full registered name and number. Many charities have similar names. The charity number removes any doubt about who you meant.
• Tell your executor. Keep your will somewhere your executor can find it, and let them know your wishes.
• Look after your family first. A gift of the residue, or a percentage, lets you provide for the people you love and still leave something for the causes that matter to you.