One of the decisions some people make when planning the distribution of their assets is to include a sizable charitable donation. Including charitable giving in an estate plan can be a great way to give back, though it can raise some estate administration considerations. For example, Ontario tax codes and legal steps should be taken into account when preparing for such a gift.
The first step for someone planning to donate some of an estate is to clarify these plans in a will. This can have some benefits to beneficiaries as well, since it can reduce liabilities when it comes to probate. However, these benefits are easier to access when a will clearly specifies the wishes to donate assets and thereby receive the proper tax deductions.
One popular way to give back is to give the remainder of a retirement account to charity. Another is to consider a charitable trust, which allows people to both give back but also retain some of the benefits of controlling assets. This can allow for more conditional giving, which is a good idea for someone with a specific idea of exactly the impact he or she wishes the gift to have.
Access to tax deductions often come down to the type of giving chosen. Limitations may exist if the registration of a charity is not completely clear, or if the contribution is to a political party, for example. Those who are undergoing estate administration with a will that involves charitable giving should involve an Ontario lawyer in order to understand how this gift affects probate and legal administrative issues.