LAKEFIELD COLLEGE SCHOOL
1879 Society
Creating your legacy for the future of Lakefield College School
focusforward
Welcome
Many of our alumni and families
have told us that they’re
eager to help make great things possible at Lakefield College School by considering a planned gift to LCS. That’s why we’ve just launched Focus Forward – a chance for you to create your legacy for the future of LCS. This premiere issue of the Focus Forward newsletter supports that
“Planned Giving is proactive philanthropy. It is thoughtful and deliberate, designed not
visionary initiative. In it, you will learn why a gift in your will to LCS makes sense for you, your heirs and the school. You will find tips on planning your estate for maximum benefit to your beneficiaries and minimum work for your estate trustee. And you’ll meet Bill Wells ’78, one of many passionate supporters who have already taken that step.
to fix something, but to
I hope you realize how much we appreciate you - our LCS family and
make things possible.”
friends. Your financial gifts, your great ideas, your presence at The
~ John Schumacher ~ Alumni Parent / LCS Trustee
this newsletter inspires you to think about an estate gift to LCS, I’d love
Grove for special moments – all of that sustains LCS every single day. If to speak with you. Sincerely,
In this issue
Theresa Butler-Porter, Philanthropic Relations
‘
Spring/Summer 2014
A warm
Making your will work for you | Four easy steps to a bequest | Profile: Bill Wells 78 | Tax-wise charitable giving
Making your will work for you It’s easy to put off the task of planning a will. But no matter how modest your assets, a carefully planned, up-to-date will protects the
3. Put your assets in joint names with your spouse to simplify your estate’s administration and minimize probate fees. 4. Update your will when your family circumstances or tax laws
best interests of the people and organizations you cherish.
change. Many lawyers recommend reviewing your will every three years.
These tips may benefit you and your heirs: 1.
Leave your RRSP or RRIF to your spouse, who can then move
5. Think about ways to reduce the taxes on your estate while
it tax-free into his/her own RRSP or RRIF. If either fund goes to
preserving as much as possible for your heirs. On the back page,
your estate instead, it becomes part of your taxable income in
you’ll find an example showing how a charitable gift can help
the year of your death.
reduce or eliminate estate taxes.
2. If you leave an annuity to your spouse, leave the entire amount
2
rather than a portion. Otherwise, your annuity’s cash value goes
Your accountant or financial planner is the best person to help you
into your estate and is included in your taxable income.
decide whether these strategies are right for you.
F O C u S F O R WA R d
4
Honouring his parents
To many, a legacy is about building on who you are and
These easy steps will help you care for
consciously designing what you do—to make a significant
your loved ones, protect your estate,
impact on what’s important to you, and quite possibly the
and secure the charitable gift you wish
rest of the world. A legacy has the potential to be positive
to make.
and transformational. More specifically, a legacy is what you
STEP 1 Make sure the decision to give is right for you, then ask your advisor whether to give a specific amount or a
create now that enhances other lives and will continue to enhance lives when you’re gone.
percentage of your estate.
For Bill, leaving a bequest is one way of honouring his parents:
STEP 2 use the legal written name
“My greatest mentors and role models are my parents who demonstrated the importance of hard work, persistence and a
of Lakefield College School Foundation.
sense of humour in confronting life’s ups and downs. They provided
STEP
3
Ask your lawyer to add a
codicil to your will establishing a gift for Lakefield College School Foundation.
STEP 4
L
‘
easy steps to a bequest
Profile: Bill Wells 78
my LCS experience at considerable sacrifice to themselves. By supporting the school, I feel I am honouring them.” Leaving a bequest which will enhance the lives of our students is
if you feel comfortable, tell
choosing to leave a gift from the heart. It brings meaning, dignity
us about your bequest. We will thank
and purpose to a life well lived. A gift to Lakefield College School
you, make sure we understand how
is an opportunity to participate in the future vision for The Grove.
you want your gift used, and (with
Today, LCS continues to focus on the needs of the future—on the
your permission) list you with our
possibilities. To be able to continue to provide young people with
other estate donors as a member of
“the essence of the LCS experience—confidence, a strong sense
the 1879 Society.
of self, a love of nature and a sense of adventure,” is a priority. CREATing YOuR LEgACY FOR THE FuTuRE OF LAKEFiELd COLLEgE SCHOOL
“I value what LCS does
“I value what LCS does and wish to preserve it. “I value what LCS does and wish to preserve it. Thewish school providesit.a and toprovides preserve The school a
unique experience which The school provideswhich a unique experience is substantially different unique experience which is substantially different is substantially different from anyother other school I from any school I am from anywith. other am familiar with. It isI am a familiar It school is a true familiar with. It is a true true balance the many balance of theofmany balance of the many factors which factors whichcontribute contributeto factors which contribute a well mature to to arounded well rounded, a well rounded mature person; much in theI maturevery person. When person; very much in the spirit of ‘Mens Sana In am gone I like the idea spirit of ‘Mens Corpore Sano.’Sana WhenInI am that the school will still Corpore Sano.’ When I am gone I like the idea that the be there doing what itthe gone I like the idea that school will still be there always has be done.” school will still there doing what it always has doing always BillitWells ~ has done.”~what done.”LCS Alumnus
3
Tax-wise
charitable giving
People make bequest gifts to Lakefield
of death, and any unused tax credits can be
College School for very personal reasons.
carried back one year. After 2015, the trustee
Lifelong friendships. A particular teacher
will be able to allocate available tax credits
whose faith in them transformed their lives.
against the taxation year of the estate in the
Example: A benefactor leaves a bequest of $100,000 to the Lakefield College School Foundation in their will.* What is the impact?
A gesture of gratitude. Just as every person
year the gift is disbursed, any earlier taxation
is unique, each reason is unique. But, all
year of the estate, or the individual’s last two
1.
gifts have one thing in common: the added
taxation years before death.
benefit of significant tax savings to the person’s estate. Tax benefits of a bequest gift Every charitable gift results in a tax receipt for the estate. Currently, the trustee can apply the estate’s charitable contributions to offset up to 100% of the person’s income in the year
The Foundation receives $100,000 and issues a tax receipt in that amount to the estate.
Other benefits of a legacy gift are: • the satisfaction of establishing a substantial gift to a charity;
2. The estate trustee applies the donation receipt to the estate’s tax return and, assuming the client has sufficient tax obligations, saves $44,200.00 in taxes.
• the donor retains the amount for use in life;
3. The cost to the estate of the $100,000 bequest is only $55,800.
• a bequest in a will is revocable and donors retain the right to change their mind.
* Assuming combined federal and provincial income tax rates of 46.4%, and donation credit rates of 44.2%.
Lakefield College School Foundation
1879 Society LAKEFIELD COLLEGE SCHOOL
Please contact Theresa Butler-Porter T | 705.652.3324 ext.329 E | tbutlerporter@lcs.on.ca 4391 County Rd. 29, Lakefield, Ontario, Canada, K0L 2H0 www.lcs.on.ca/plannedgiving The information and opinions contained in this newsletter are obtained from various sources believed to be reliable, but their accuracy cannot be guaranteed. Lakefield College School Foundation and its employees and agents assume no responsibility for errors or omissions or for damages arising from the use of the published information and opinions. Readers are cautioned to consult their own professional advisors to determine the applicability of information and opinions in this newsletter in any particular circumstances. This newsletter is under copyright; its reproduction in whole or in part without the written permission of the copyright owner is forbidden.