The following information is provided as general information and should not be taken as formal legal or tax advice. Donors should consult with their own legal and financial advisors before taking any action.
Bequests and estate residuals
When making or revising your will, consider how a bequest can provide a lasting legacy of your support for the university.
By designating the university as a beneficiary of RRSPs and RRIFs, the asset is transferred to Waterloo, and the estate receives a tax credit to offset the tax on income. Since the asset passes outside the estate, no probate fees are payable, which results in further savings to the estate.
Life insurance is an economical way to give a larger and more lasting gift to Waterloo than might otherwise be possible without drawing on your assets now or depleting your estate. If structured correctly, your gift will not be included in the value of your estate and therefore, you will avoid probate fees.
There is a real advantage to making a bequest of shares to the university. Your estate receives a charitable tax receipt for the fair market value of the shares (at the time they are received) and your estate is not required to declare any resulting capital gains on income.
Charitable gift annuities
A gift annuity combines your gift to the university with an annuity. The university purchases the annuity on your behalf through a licensed life insurance company. Your guaranteed annuity payments continue throughout your lifetime, unaffected by changes in the economy or interest rates. The annuity can be written to cover both you and your spouse for life, or for a specific number of years.
Charitable remainder trusts
A charitable remainder trust is a deferred giving arrangement under which you may transfer property (cash, securities, or real estate) to a trustee.
Gifts-in-kind are tangible property including works of art, books, real estate, equipment, collections — virtually any physical object in your possession. Donation receipts are issued for the fair market value and may significantly reduce your taxes.