Estate planni

choices

BY TERESA BLACK HUGHES
Contributing Writer

THE spring 1996 federal budget gave a
boost to estate planners with a charita-
ble inclination.

Three changes were introduced to the rules
relating to charitable giving effective 1996.

First, the annual limit on charitable dona-
tions has been increased from 20% of net
income to 50% of net income.

Second, the limit has been increased to
100% of net income ii the year of death and
the year preceeding death from the current
20%, including bequests and legacies.

Third, with respect to gifts of appreciated
capital property, the previous limit of 50% of
taxable capital gains will be increased to
120%.

~ You may still carry forward undeducted
donations five years.

For those who are philanthropically
inclined, the estate planning opportunities are
enormous.

Take the 100% offset against income in the
year of death. If a gift upon death (which
includes donations made by a will) is signifi-
cant enough, it may wipe out that year's
income resulting in no income tax.

For very generous donors who donated
more than their allowable 50% limit in the pre-

"., ceding year of death there may be a carry-for-

ward to the yeur ‘of death resulting, again, in
no income tax due for that year — and possi-
‘bly a refund. :

Now, consider registered monies including

ng
on rise

RRSPs, RRIFs and annuity residue, upon
death. Until this change, for many people
approximately 50% of this value would have
ended up in the hands of
Revenue Canada . If this
amount was denoted to go to a
charity (in your will), this could
end up offsetting your income
in the year of death. Voila, no
income tax.

Government spending has
been cut and fewer grants are
being provided to non-profit
organizations. One could view
this as the middleman being
removed and a more dircct link being created
between the donor and the recipient. As a tax-
payer, most of us would rather choose what
charity benefits from our hard-earned dollars.
From time to time we have heard of a society
that has received government grants and
whose end product was highly distasteful to
the general public. Charitable donations play
an important role in our society, one which
cannot be fulfilled by government. An increase
in the tax advantage to giving both while alive,
or upon death, creates an incentive for taxpay-
ers,

As with any tax change, it is important to
discuss the details with your financial consul-
tant, accountant and lawyer.

Maybe it’s time to give a little back to the
hospital, church, or research organization that
has helped you most.

Teresa Black Hughes, CFP is a partner at
Park Royal South's Solguard Financial Ltd. as
well as a consultant.

charitable

‘How will it affect you?
‘Call today f for a free copy of our latest newsletter

~ SOLGUARD FINANCIAL LTD.
Building better retirement incomes since 1974:

# 1205-675 West Hastings Street
688-9577

; Vancouver

‘Understanding your
options is critical in
planning to create
retirement income using
your registered assets,
especially if you are
between the ages
of 65 and 69.

Call Chris Carter
Financial Advisor
925-5565

for your free copy of this
special report.

West Vancouver

401-Kapilano. 100, Park Royal South
925-3101

EN NO Re esata

TERESA Black
Hughes says

donations can
serve, among
other things, to
heip lower the
estate tax load.

Aw future and financial success for her clients are her goals. Elaine Douglas, ‘president of
the Financial Fitness Group Inc., is a registered financial planner with over 15 years
experience. In addition to her private clients, Elaine teaches courses ‘on investment and personal
financial management for North Shore Continuing Education. . oa

Active in community service during her 27 years as a resident of the North Shore, Elaine has been
PTA president and assisted on the executive of many other local groups. She is a member of the
Better Business Bureau, North Shore Wornen Mean Business, the Western Businesswomen’s
Association and the Vancouver Board of Trade. Currently, she is President of the B.C. Asseciation
of Financial Planners. Elaine can be contacted at Financial Group Inc. - 1600, 800. West Pender
St., Vancouver, B.C. V6C-2V8 926-6207/689-7966 .

LIONS GATE HOSPITAL
A Caring Community

A &asting Gift

well into the future.
If you would like to review your plans or would like more information on making a gift please call Sheilah Grant, Director of Development at 984-5785 to arrange an

: - MIDLAND. WALWYN

LUC CHER THON EC INGS
TM Blue Chip Thinking is 2
trademark of MWCI, Member CIPF.

"100 Park Royal
Suite 114 West Vancouver’
~. 925-5565 (24 hour)

appointment, _

een |

ft ions Gate Hospital plays a major part in our lives. I¢ touches us, our families and our neighbours in some way almost every day. It is ours, and it deserves our
support.

Many times through thoughtful estate planning there exists an opportunity to look after family and at the same time contribute to the betterment of the community
in a significant and lasting way. Gifts to Lions Gate Hospital Foundation through bequests, annuities, property.and life insurance are some of the ways that you and
your family may make a larger contribution in the furure than might be possible today.

A gift through your estate will help to ensure that all of the resources needed to keep pace with the changing world of health care are available tor North Shore families

re

Lions Gate Hospital Foundation
231 East 15th Street

LIONS GATE - North Vancouver, B.C.

HOS FETAL

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