Legacy Giving

Designating a gift to UTS in your will is a great way to leave a legacy, support the school and help ensure the future success of the school. It is also a strategic way to reduce the taxes owed on your estate. Upon receipt of your gift by UTS, your estate will receive a tax receipt that can be applied to the income on your final tax return.

Choosing to support UTS in your will can reduce, and in some cases, even eliminate the taxes to be paid. You can support the cause near and dear to you without impacting the legacy your family and loved ones receive.

Benefits to You

• Convenience: A legacy gift in your will can be made no matter your age and for any amount.
• Simplicity: Leaving a gift to UTS in your estate can be as easy as adding a clause to your will. Notify your lawyer or notary and they can take care of adding it in.
• Affordability: Most charitable gifts in wills are left by donors of average means. Leaving a small percentage of your estate to UTS can be your largest gift to the school and will have a bigger impact than most of us would ever be able to make during our lifetime! Legacy gifts of any size are welcome, appreciated and will be recognized by membership in the UTS Arbor Society.
• Tax Relief: Canada has world-class tax incentives for those who give to charity through their estate. A legacy gift in your will is a highly effective way to reduce estate taxes.
• Tax Planning: UTS will issue a charitable tax receipt for the full value of your bequest, reducing the tax payable on your final return. If your bequest exceeds 100 per cent of your net income, the excess may be carried back to the previous tax year or taken forward as part of a graduated rate estate plan.
• Peace of Mind: You can change your will at any time.
• Satisfaction: Legacy gifts are made for personal reasons while ensuring that UTS can provide an extraordinary education to generations of high-achieving students. Involve your loved ones in your decision. Make it about celebrating who you are, the values you hold, and the life you lead. Your bequest can create a lasting memorial for you, your family or anyone you may wish to honour.

Your bequest to UTS may be one, or a combination, of the following:

• A percentage of your estate
• The residual of the estate
• A specific dollar amount
• Real estate
• Stocks and securities
• Gifts-in-kind of value and/or use to the purposes of UTS
• Insurance policies and annuities.

Drafting a will should be arranged with legal counsel. It is preferable that you allow for the broadest possible flexibility for determining how your gift should be used by UTS while at the same time ensuring that the school can carry out your wishes.

Here is an example of suggested wording:

I give and bequeath to University of Toronto Schools Foundation, Toronto, Ontario, the sum of $________ or ______% of my estate.

A gift of life insurance is an affordable way to create a significant legacy at UTS. By transferring ownership of an existing or new policy to UTS, you will receive a tax receipt for premiums paid after the date of transfer. You can also name UTS as beneficiary of your policy. The resulting tax credit will reduce estate taxes and increase the after-tax value of your estate for other beneficiaries.

Benefits to You:

• Simplicity and Convenience: The transaction is simple. Your life insurance specialist can advise you on the type of policy that would best fit your needs, custom design your program and carry through with the necessary paperwork.
• Leverage and Estate Preservation: Make a larger gift than you might otherwise be able to do, without impacting your current assets or your estate later. The eventual value of your policy will be far greater than the premiums you pay and is not part of your estate.
• Save Taxes Today: Depending on arrangements you may receive charitable tax receipts for the premiums paid or the policy’s cash value.
• Eliminate Probate, Legal and Executor Fees: Life insurance is not subject to probate costs or delays in settlement. The full proceeds are payable to UTS, at maturity or upon death.
• Control: Life insurance is not a matter of public record and allows you to remain anonymous, should you choose. Unlike a will, the gift cannot be contested.

Charitable gift annuities provide support for UTS and a secure income stream for your lifetime. Depending on your age, this income may even be tax free. An annuity is an agreement where you make an irrevocable payment in return for a guaranteed lifetime income, most or all of which is non-taxable.

Part of your total contribution is used to purchase an annuity from a licensed insurance company. You receive fixed guaranteed payments for life with a portion of this income tax-free depending on your age, and UTS receives an immediate cash gift for its current needs. Gift annuities may also be purchased for others, such as parents or grandparents.

UTS can be a named beneficiary on registered retirement plan documents. A tax receipt for the value of the investment gifted will be issued to the donor's estate and applied towards the final income tax return. You can avoid probate, and gifts of RRSPs/RRIFs are less susceptible to being contested than a charitable bequest.

• Charitable remainder trusts are a way for donors to make a sizable commitment while maintaining the use of their assets for the duration of their life or the term of the trust.
• Assets placed in the trust can include cash, stocks, bonds, securities and other investments. If you establish a charitable remainder trust, you will receive a tax receipt for the present value of your assets calculated using life expectancy and prevailing discount rates at the time the trust is established.
• A charitable tax receipt will also be sent to you at the time the trust is established.

Other benefits of charitable remainder trusts include:

• Carrying the excess tax credit forward for up to five years if your gift exceeds 75 per cent of your net income in the year that the gift is made
• Receiving lifetime income from your donation
• Avoiding probate and maintaining the privacy of the details of your gift

In addition to the many ways of making a personal planned gift to UTS, the school can also be designated as a beneficiary of memorial donations. The Office of Advancement will create a customized memorial donation card and will work with your family or estate trustees to facilitate donations to UTS in your memory. You may choose to direct your memorial donations to a specific project such as the UTS Bursary Fund or simply to the school’s area of greatest need. The UTS Office of Advancement will notify next-of-kin of donations received.

Canada has world-class tax incentives for those who give to charity in their wills. The reality is that your estate will be taxed. Choosing to support UTS as a charity can reduce, and in some cases, even eliminate the taxes to be paid. You can support UTS without impacting the legacy your family receives.

Having a will is crucial to ensure peace of mind for your loved ones and to avoid legal complications your family would have to face in absence of a will. But most importantly a will means that you are in the driver’s seat when it comes to your legacy. You get to choose to protect your family and support the causes that are dear to you while maximizing the tax benefits to your estate.

Once you leave a gift to UTS in your will and notify the school of your bequest intention, you become a member of the UTS Arbor Society. With your consent, you will be recognized in our donor listing and will be invited to join programs that give you a great sense of the impact of your future gift. A gift in your will can help your family feel part of the impact you are making. Knowing your loved ones will remain connected with you through the school that is dear to you can be very comforting.

There is no minimum amount for a gift in your will. Most charitable gifts in wills are left by donors of average means. Leaving a small percentage of your estate to a charity like UTS can be your largest gift to the school and will have a bigger impact than most of us would ever be able to make during our lifetime!

You can amend your will at any time. Adding a gift is as simple as letting your intentions be known to those who drafted your documents in the first place. If you don’t know who that is, you can choose another estate lawyer or notary. It’s as simple as that.