Types of legacy gifts

A gift of securities to MCC allows you to leave a legacy without encroaching on your liquid assets. You can save on the tax that Canadians pay on the capital gains earned by securities.

If you sell the securities yourself, you will likely pay tax on a considerable portion of your capital gain. However, when you transfer ownership of the securities to MCC directly (gifting in-kind), you could avoid triggering capital gains tax and receive a charitable receipt for the market value of the securities.

Some practical considerations to leaving this type of gift:
 

• A brokerage agent is required to transfer the ownership of a security.
• Gifts of security-in-kind can be made during your lifetime or at the end of your life through your will.
• Consult with your financial advisor to identify the tax advantages.
   

Consider donating a life insurance policy. Some practical considerations for this type of gift:

• As long as the ownership and beneficiary of the life insurance policy are assigned to MCC and are both irrevocable, charitable tax receipts can be issued to you as you pay the insurance premiums. These charitable receipts will help you realize tax savings during your lifetime.
• You can also name MCC as the beneficiary of your policy but not the owner of the policy. In this case, charitable tax receipts cannot be provided until the time of your death.
• The full benefits of the life insurance policy can be paid directly to MCC after you pass away. As long as this gift is payable directly to MCC, it will not be subject to probate or estate fees and will preserve the full value of your estate.
• Depending on your age and health, transferring an existing policy might make more sense than purchasing a new policy.
   

Perhaps you have a real estate asset you’d prefer to donate directly rather than sell. You can receive a tax benefit during your lifetime while continuing to use the property until you pass away. Property can also be described and left in your will.

Some considerations to leaving a legacy gift of property:

• You can receive a potential income tax charitable deduction for fair market value while the full value of your gift can be used by MCC.
• A gift of property does not have to be real estate. Other gifts-in-kind can be considered, including other forms of personal property such as art objects, jewelry items, intellectual property and cultural property items.
• Gifts of foreign real estate cannot be accepted. 
• MCC has the right to refuse a gift, particularly if there are unacceptable liabilities attached to the gift.

All funds received through legacy gifts are used for MCC programming in areas where they’re most needed at the time.

For many people, perhaps the largest gift they can make is to leave a gift in their will. This can be done by including a percentage or a specific dollar amount. Leaving a gift of cash in your will becomes a gift from your estate and is processed by your executor after you pass away.

You can donate a non-cash asset to MCC, such as:
 

• Publicly traded securities (stocks, bonds, etc.)
• Farm and other commodities
• Business or farm equipment
• Real estate
• Other forms of personal property such as art objects, jewelry, intellectual property, etc.
   

Did you know that you can name MCC as a beneficiary of most retirement accounts? For many people over 70 ½, a Qualified Charitable Distribution (QCD) option from your IRA or other qualified retirement account is an easy way to give that often gives you tax benefits.

As with retirement accounts, you can name MCC as a beneficiary of most life insurance policies.

Did you know there are ways to give money to MCC and generate income for yourself during your lifetime? A popular way to do this is through a Charitable Gift Annuity. You receive a steady stream of income with tax benefits, since part of your gift is passed along to MCC.

There are other options such as:
 

• Charitable remainder trusts
• Charitable lead trusts
• Revocable living trusts