Legacy oct 15 2015

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