YOUR LEGACY October 2015
In This Issue… Dr. Grant Sampson says that leaving a bequest to a registered charitable organization such as UHKF is an excellent way to avoid income taxes on your estate.
ASK THE EXPERT Kathryn Wright’s update on Ontario’s new estate tax program, p 2
PLANNED GIFTS Why now is a good time to talk about our plans, p 2
FROM ZOË’S FILES Honouring Michael Cummings, p 3
The health of our community proves to be a wise investment Dr.
Grant
Sampson
understands
annual gifts help him avoid taxes
the importance of investing wise-
- while benefiting our local health
ly to maximize the impact of his
care. In fact, Dr. Sampson is well
giving within the community. He
known for his sound fiscal plan-
is one of the generous donors who
ning. It’s because of his attention
have supported the MRI project at
to detail that he was brought in
Kingston General Hospital, making
to create a division of perform-
his gift through his Registered Re-
ing arts and public lectures, and
tirement Income Fund (RRIF).
then again later in his career,
Last year, he made a similar donation to the ongoing project to relo-
to return the program to solid financial footing.
cate the Ear, Nose and Throat clin-
When it comes to his personal sit-
ics at Hotel Dieu Hospital.
uation, Dr. Sampson finds he is
After a 46-year career at Queen’s University,
the
retired
English
professor acknowledges that his
in an enviable position of not needing to use funds from his RRIF every year. Cont’d on Page 4 YOUR LEGACY
1
Have you made a planned gift?
Do you know about the recent changes to Ontario’s estate taxes?
A charitable gift made at any time is a personal commitment. For some, there may be reluctance in sharing plans for a bequest or other planned gift.
By Kathryn Wright, PFP, CFP, EPC, CDFA, CPCA, CFDS
your estate plans, are appropri-
(This is an abridged version of an article
view your Will and consider how
from the May 2015 Profile Kingston).
well your Executor would be at
Charities such as UHKF often ask that you indicate whether you are planning a gift (but will not ask you to disclose the amount.) Why do we want to know?
1
To be able to personally say thank you, during your lifetime. This allows us to celebrate your commitment (even if you do not wish public recognition!)
2
To provide you with peace of mind. We want to ensure you have the right information for making your gift – and that we are able to meet your desire for recognition.
3
To help ensure your gift is directed to a meaningful area that suits your interests.
There is some truth to the old platitude that change is inevitable, even when dealing with death and taxes.
then filling in what is very similar to a tax filing. Once the executor has received the Certificate of
handled after we die. Perhaps it
Information Return.
is to raise more taxes as the Estate Administration Tax (EAT), formerly known as probate, has shifted
this final tax bite from your estate fall under the acronym “EAT.”
If you have or are planning to make a gift in your Will in support of one of more of the Kingston hospitals, consider a confidential conversation with Zoë MacKenzie, CPCA at (613) 549-6666 ext. 4953 or email zoe.mackenzie@uhkf.ca
and
they have 90 days to file the Estate
a sense of humour at work to have
4
information
mental change in how things are
of Finance. There must have been
To help inspire future donors. By making a planned gift, you are helping us show others what is possible. Your legacy can help motivate other donors, helping the Kingston hospitals deliver extraordinary care.
the
Appointment
gime administered by the Ministry
gathering
In Ontario, there has been a funda-
from primarily a legal realm to a re-
ate and sufficiently prepared. Re-
EAT is charged on the total value of the estate, that is, what was owned at the time of death. It includes far more than your car, bank accounts, investments and real estate. There is a requirement with the new Estate Information
of
Estate
Trustee,
Some questions to consider: Is your Executor detail oriented? Would they be in a position to gather the information needed to list your holdings and provide the detail and fair market value? Is this information readily available and accessible today? Would your Executor be aware of these changes and know professional valuations or appraisals should be considered? Do you have an alternate or contingent Executor who might be better suited to this?
Return for the value of other prop-
Take the time to review the new
erty, which may include business
government form. Consider how
interests, household contents, art,
you might prepare your records so
jewelry
contracts
that completing this form fully is
where the residue is paid out to
not unduly onerous. Approximates
the estate, that is, when there is no
are not sufficient. Even when an
named beneficiary.
estimated value of an asset is in-
and
insurance
These new reporting requirements make this an ideal time to consider who you have named as your Executor and whether they, and
cluded, there is a requirement that the Executor will file an amended Estate Information Return showing final value within 30 days. Cont’d on Page 4
2
Extraordinary People. Innovative Healthcare.
Every donation matters: Cummings family gives a meaningful thank you By Zoë MacKenzie, CPCA
Sally explained that her father was
For those who may be unaware, my
so grateful to the doctors, nurses and
office is located behind the big re-
front line staff who cared for him
ception desk at the Cancer Centre
during his treatments at the Cancer
of Southeastern Ontario at Kingston
Centre, that he expressed his wish-
General Hospital. It’s a bit hard to
es to Sally, who had traveled from
find, which is why I love when the
Prince Edward Island to
staff in the Cancer Centre ask me to
brother to be together with their fa-
come visit with someone interested
ther in his final months.
in making a donation.
join her
Michael wanted Sally to sell his Har-
I love to chat with patients, former
ley Davidson and to donate the pro-
patients and their families! They
ceeds to UHKF to support the com-
share such passionate stories.
fort and care needs of patients and
I’d like to share one of those stories from this past summer, when I met Sally Cummings.
Sadly, Sally’s fa-
their families while getting treatment at the hospital. Sally handed me $800 in one hundred dollar bills!
ther lost his fight with cancer in July.
After thanking Sally for the gift, I
She was there to fulfill a wish that
asked if she would mind me shar-
her father had shared with her and
ing this story in the newsletter. Sally
her brother Bill. As she recounted her
seemed pleased that her father’s sto-
story, her eyes filled with tears.
ry of his last gift be shared, to poten-
Sally said her father, Michael Cum-
Sally seemed pleased that her father’s story of his last gift be shared, to potentially inspire others.
tially inspire others.
Zoë MacKenzie, CPCA Associate Director, Planned Giving 613.549.6666 ext 4953
were fulfilled, letting her know I would share his story. We hugged and Sally
mings, loved motorcycles. When he
Sally also provided us with permis-
left for her ride home. As I watched her
retired from the Canadian Armed
sion to include her father’s name on
leave, I felt she wanted me to help her
Forces he bought a Harley Davidson
one of our donor walls in the future.
keep her father’s memory alive.
Special Edition bike which was his
She then told me that her infant son’s
what we all want, isn’t it? To be re-
pride and joy.
name was on the memorial wall. He
membered?
had passed away seven years ago in the Neonatal Intensive Care Unit after
complications
during
birth.
His name was also Michael and Sally was also grateful for the care and dedication that she felt when he was terminally ill.
Michael Cummings
It’s
Thanksgiving reminds us to be thankful for everything we have…including the memory of family and friends. Please remember your loved ones and think about a lasting gift that you might want to pass along as a legacy gift on this next Thanksgiving Day… for those
I thanked Sally for coming in and
who come after us and the future of
making sure that her father’s wishes
continuing excellent health care.
YOUR LEGACY
3
This is an ideal time to meet with all the professionals you deal with. Ask your lawyer about your Will. Speak with your accountant, your financial and insurance advisors. Ask what would happen at the time of your death. The profession-
Your legacy may be a gift that supports her future.
als will have different perspectives.
Cont’d from Page 1, Dr. Grant Sampson
While he has designated the proceeds from the fund be granted to UHKF for the hospitals upon his death, he knows some of that money can be used for hospital needs today. “The time may come when I need lots of medical attention and these sums of money myself. But if I don’t, why not give them to [the hospitals?]” He adds, “If I give the shares - not the money but the shares - to the foundation, I don’t have to pay tax on the capital gains and I get a credit for my income tax. That sounds good to me!” Estate
planning
is
similar,
he
says. If a person leaves a bequest to a charitable organization, they may end up having more money left over for their heirs, as the donation cuts down on probate or income taxes. “I
strongly
recommend
it,”
Dr.
Sampson says, “if a certain portion
This information may help you as-
of your money is left to, let’s say,
sess the effectiveness of your legacy
the hospital, it really cuts a hole in
planning.
the income tax your executor is going to be faced with.” As for the cause, Dr. Sampson says the people of southeastern Ontario are fortunate to have access to the Kingston hospitals. “I think we have the very best of teaching doctors,” he says. “They are not only very good doctors, very good research people, but good teachers. They care for their patients. You’re ton
lucky. are
People to
Kings-
of the Will, and the listing of assets required for the Estate Information Return.
If a charity is named as
beneficiary for the policy, a number of positive tax implications could impact your final tax return. Review these with your insurance advisor and accountant to ensure your approach truly is tax-effective. A family meeting could be critical.
kind of hospitals and the cal-
Discussing death and taxes is never
ibre
easy.
teachers
have
surance policy, it would fall outside
the
of
lucky
in
By naming a beneficiary on an in-
and
doctors.
Talking today may save fu-
With that, has to go money to have
ture conflict, especially with those
high-calibre equipment.”
burdened with the new reporting.
You can join Dr. Sampson in leaving
Kathryn Wright is a Certified Financial
a legacy of care for the future of care
Planner, Elder Planning Counselor, Certified
in
Kingston.
MacKenzie you
could
to
Contact
Zoë
Divorce Financial Analyst, Certified
discuss
how
Professional Consultant on Aging and a
leave
a
legacy.
Chartered Financial Divorce Specialist. She
Call (613) 549-6666 ext. 4953 or
owns Wright Wealth Strategies, specializing
email zoe.mackenzie@uhkf.ca
in the “what if” scenarios.
55 Rideau Street, Suite 4 Kingston, Ontario K7K 2Z8 Tel 613.549.5452 Toll-Free 1.866.549.5452 Email foundation@uhkf.ca Website uhkf.ca Charitable #820218147 RR0001
The information and opinions contained in this newsletter are obtained from various sources believed to be reliable, but their accuracy cannot be guaranteed. University Hospitals Kingston 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.
Cont’d from Page 2, Estate taxes