Estate planning is an essential part of financial planning, especially for those with significant wealth. For high net worth individuals, creating a plan that outlines how their assets will be distributed after their death is critical. Charitable estate planning is a way to make a difference beyond one’s lifetime by supporting charitable organizations or causes through the transfer of assets.

Charitable estate planning is the process of including charitable giving in an individual’s estate plan. This type of planning involves setting up a charitable trust, a foundation or bequeathing assets directly to a charity. In addition to supporting a charitable organization, there can also be significant tax benefits for the donor and their heirs.

GILKO CAPITAL specializes in charitable estate planning for clients who want to make a meaningful impact with their wealth while ensuring their family is taken care of. Our team of experts can help you navigate the complexities of charitable giving and create a plan that is tailored to your specific goals.

There are several ways to incorporate charitable giving into an estate plan. One common method is through a charitable trust. A charitable trust is a trust that is set up for the purpose of making donations to one or more charities. The donor transfers assets into the trust and the trust pays out a percentage of the assets to the charity each year. Charitable trusts can be set up during the donor’s lifetime or as part of their estate plan.

Another way to support a charitable organization is by creating a foundation. A foundation is a separate legal entity that can receive donations and make grants to charitable organizations. A family foundation can also involve multiple generations in charitable giving, passing on the family’s philanthropic values to future generations.

For those who prefer a simpler approach, bequeathing assets directly to a charity can also be an effective way to support a cause. This can be done through a will or other estate planning documents.

In addition to the personal fulfillment of making a difference, there can be significant tax benefits associated with charitable estate planning. By donating assets to a charitable organization, donors can receive a charitable tax deduction, potentially reducing their overall tax burden. This can also have a positive impact on the donor’s heirs by reducing the amount of taxes owed on the estate.

In Ontario, there are also specific tax benefits related to charitable donations. The Ontario Land Transfer Tax Act provides an exemption from land transfer tax for transfers of land or a beneficial interest in land to certain charitable organizations. This exemption can result in significant savings for donors who are including real estate in their charitable giving.

At GILKO CAPITAL, we understand the importance of charitable estate planning and the impact it can have on the community. Our team of experts is dedicated to providing personalized advice and guidance to help our clients create a plan that aligns with their values and goals. Contact us today to learn more about how charitable estate planning can benefit you and the causes you care about.