GIFT
PLANNING
Integrating Estate Planning and
Charitable Gift Planning
Sophia E. Dunkley, B.A., LL.B.
Scotia Private Client Group
On the wheel of life, which comes
first, the estate plan or the charitable
plan? Your estate plan should be part
of your total financial strategy and one
that addresses your goals and objectives.
the Will and administer the
deceased’s (testator) affairs. An
executor may be a family member,
friend or a corporate executor.
Without a Will, the testator will die
making decisions about your
property and finances, which
includes any type of “financial
decision or transaction that a person
would make in the course of
Charitable planning may be just one
intestate and the estate assets will be
managing his/her income, spending,
component of your total financial
distributed based on provincial
assets and debts” (see MAG
strategy, or it may drive the discussion.
regulation (i.e. in Ontario it is the
publication).
Furthermore, charitable giving is an
ideal way to leave your mark on the
world, in life as well as on death.
Succession Law Reform Act), and not
The initial estate planning discussion
in accordance with the wishes of the
testator.
The consideration of different
planning needs (financial, tax and/or
2) Powers of Attorney
THE ESTATE PLAN
charitable) together with the estate plan
Each province has its own legislation
What is an estate plan?
often takes place upon the occurrence of
dealing with the management of an
Your estate is the total sum of your
a major life event: marriage, the birth of
individual’s affairs, personal/health
property that you hold upon death,
children/grandchildren, retirement,
care and financial, in the event of
which is administered by your executor
illness. First, there will need to be
legal and/or mental incapacity.
based on your previously expressed
consideration of dependents who may
Although “powers of attorney” is a
wishes.
need to continue to rely on your income
widely understood concept, the
specific terms and references used
or others whom you may be required to
An effective estate plan takes into
will vary by province.
benefit under your Will. Then you may
consideration all aspects of your assets
(accumulation, conservation and
wish to consider others – family
A power of attorney dealing with
members, friends or charities – you
personal/health care affairs is the
distribution) in a manner that minimizes
appointment of a person or persons
would like to benefit. Consequently,
probate fees, reduces exposure to tax
who will act on your behalf in
there needs to be an understanding
liability and achieves the personal and/
making decisions of a personal
about your current and projected assets
or business goals of an individual or
nature, which includes but is not
and liabilities, as well as your on-going
family. It is concerned with planning for
the ultimate succession of your interests
and assets acquired in life upon death.
limited to “health care, nutrition, financial needs, in an effort to estimate
shelter, clothing, hygiene andsafety” the approximate value of your estate.
(for example, see Ministry of the The roles of both executor and attorney
Some essential components of an
estate plan:
1) A Will, which is reviewed and/or
updated regularly.
A Will provides instructions for the
distribution of your assets upon
death and prioritizes your wishes.
In making a Will, an executor is
appointed to carry out the terms of
Attorney
General
(Ontario) entail a great many duties and
publication, Powers of Attorney) responsibilities. You should give careful
(“MAG publication”), should you
consideration to your choices.
become incapable of making such
decisions yourself.
THE CHARITABLE GIFT PLAN
A power of attorney dealing with
What is a charitable gift plan?
financial affairs/property is the
A charitable gift plan helps you to
appointment of a person or persons realize your philanthropic goals, once
who will act on your behalf in you have determined your capacity to
