wishes. Also, it is important to discuss stage. Depending on the province, gift is made in life or out of the estate
the importance of an estate plan to probate fees charged on the total value of assets (i.e. those assets typically available
secure future interests and wishes and the estate and minimizing tax liability to family members through a direct
how the charitable plan fits within the are often a central concern in the estate designation).
estate plan.
planning process – it may determine
Like any important financial or
Depending on your overall financial, business decision you make in life, any
which assets you choose to keep outside
tax and estate plan, you may wish to potential planned giving donor should
of the estate, transfer to a spouse or trust,
or give away.
combine an in-life gift with a bequest or
widely consult with independent legal,
other deferred gift, or combine some of
Integrating estate planning with a financial orother professionals.
thecharitablegivingstrategiesmentioned charitable giving plan is a balancing of
above.
competing personal, financial, tax and
Sophia E. Dunkley, Manager
philanthropic goals. It is essential to put
Philanthropic Advisory Services
SUCCESSFUL INTEGRATION
your personal and family needs at the
Scotia Private Client Group
centre of the planning process, and then
The estate plan is the realization of
consider how charitable giving can
your overall financial plan, which helps
enhance the process.
you to determine how much wealth you
Sophia has experience working in the
area of charities law and planned
will need to accumulate and conserve
Also, some key issues to determine is
giving. She is a member of the Canadian
based on your need to support whether immediate family members
Bar Association and the Canadian
dependents and to take care of liabilities, have been adequately provided for and
Association of Gift Planners.
not to mention your own personal needs whether potential liabilities in the estate
during your retirement and end of life have been addressed, in the event that a
A Tax-Effective Stimulus
continued from page 13
• Because there is a market value for Finance Minister Jim Flaherty, with the to ensure that this issue is on their party’s
publically traded securities, the support of Prime Minister Stephen agenda.
government had no concern about Harper.
I want you to know that all of you
valuation abuse in implementing the
First, the Finance Minister and the can really help make this happen.
capital gains tax exemption for such
Prime Minister must be convinced that Specifically, it would be very helpful if
assets. Logically, there will be a
the measures are good public policy as each of you wrote a letter to your local
concern about potential valuation
well as good politics. Because we have a Members of Parliament outlining why
abuse for these proposed measures,
minority government, it is important these measures would benefit all charities
because there is no public market for
that the measures have the support of in their local ridings and asking them to
private company shares or real estate. the Liberal Party in particular, but also communicate their support to the Leader
We propose to address this concern the NDP and the Bloc Quebecois. of their Party. If your local MP is
up front by implementing a simple Equally important, the Finance Minister Conservative, the MP’s support should
condition – the donor would not must be satisfied that all material be communicated to Finance Minister
receive a charitable donation tax concerns raised by tax policy Jim Flaherty and Prime Minister Stephen
receipt until the charity has sold the professionals in the Department of Harper. If your local MP is a Liberal, an
shares or the real estate and has Finance have been satisfactorily NDP or a Bloc Quebecois, the MP’s
received the cash proceeds from the addressed.
support should be communicated to the
disposition.
Leader of their Party and the Party’s
It is also crucial that all Members of
Finance Critic.
Although everyone reading this Parliament are aware of the importance
opinion piece is probably convinced that of these proposals to Canada’s charitable
Together, we can make it happen!
the government should implement these sector. It is particularly relevant to a
measures in the next budget, it is the Member of Parliament if he or she Donald K. Johnson, C.M.
government’sdecision,notours. More receives an oral or a written Senior Advisor, BMO Capital Markets
specifically, it is a decision of the Minister communication from a community or
of Finance who must also have the business leader in his or her local Donald has served as a volunteer on a
support of the Prime Minister. The first constituency,
emphasizing
the number of non-profit boards. Currently he is
step in 1997 was made by Finance importance of these measures to not-for- a Director of Toronto General & Western
Minister Paul Martin, with the support of profit organizations in his or her
Hospital Foundation and Chairman
Prime Minister Jean Chretien. The community. Members can then discuss
Emeritus and Director, Business for the
second step in 2006 was made by theseproposalsinpartycaucusmeetings
Arts.
