Gift Planning

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Bequests

Leave a lasting legacy in your will once your needs and those of your loved ones have been met.

• Reduce estate taxes

Wills are the central pillars of estate planning. You can make a gift by will, known as a bequest, for a specific dollar amount or item, or for a share or a percentage of your estate.

Benefits of making a bequest:

• You have the use of the asset during your lifetime
• A bequest reduces taxes owed by your estate
• A bequest is revocable and can be modified if your financial circumstances change

What bequest wording to use:

“To pay to The Governing Council of the University of Toronto (Canadian charitable registration number BN # 108162330-RR0001) ___% of the residue of my estate [or the sum of $____________.] This gift is to be used for such purposes and designs as deemed appropriate by The Governing Council of the University of Toronto.”

Sample bequest forms by college or faculty, including bequest wording:

Applied Science and Engineering, Faculty of

Architecture, Landscape, and Design, John H. Daniels Faculty of Arts and Science, Faculty of

Continuing Studies, School of Dalla Lana School of Public Health Dentistry, Faculty of Education, Ontario Institute for Studies in Forestry, Faculty of

Graduate Studies, School of Hart House

Information, Faculty of Innis College

Kinesiology and Physical Education, Faculty of Law, Faculty of Management, Joseph L. Rotman School of

Massey College

Medicine, Temerty Faculty of Music, Faculty of New College Nursing, Lawrence S. Bloomberg Faculty of Pharmacy, Leslie L. Dan Faculty of Senior College Social Work, Factor-Inwentash Faculty of St. Michael's College, University of Trinity College, University of

University College University of Toronto Libraries University of Toronto Mississauga University of Toronto Scarborough

Victoria University in the University of Toronto Woodsworth College

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Next steps:

Request info

Would you like personal assistance? Speak with the gift planning team.

The University of Toronto is featured in Will Power, a national public education campaign to help people change the world through leaving a gift in their will to charity. To learn more about charity legacy giving and to use the Will Power calculator to estimate your potential impact, visit Will Power.

Stocks and Securities

Benefit from tax reductions when you donate public securities.

• Reduce estate taxes
• Receive immediate tax benefit
• Reduce capital gains tax

Donating public securities is a tax-smart way to support U of T. The value of your charitable tax receipt is based on the market closing price on the day that U of T receives your gift in its brokerage account.

How to make a gift of eligible securities:\ Download the appropriate form and instructions:

Benefits of gifts of stocks and securities:

• Receive a charitable tax receipt for the fair market value of the donated security
• Benefit from a capital gain inclusion rate of zero when you directly donate eligible securities
• When your executor donates eligible securities, your estate does not pay the capital gains tax that is triggered on death under the Graduated Rate Estate Rules, and it also benefits from the full charitable tax receipt

Example of how a gift of securities works:

Jeff and Priya decided to support U of T with a gift of $100,000. They learned that they would have a greater net tax benefit by donating their public securities directly to U of T rather than by selling them and donating the cash proceeds. This chart comparing the costs and savings assumes a tax rate of 50 per cent.

Next steps:

Request info

Would you like personal assistance? Speak with the gift planning team.

Registered Retirement Funds

Plan for a bright future with your RRSPs and RRIFs—and plan for the future of the University.

• Reduce estate taxes

The University of Toronto can be named as a direct beneficiary of Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs).

Benefits of planned gifts of RRSPs and RRIFs:

• There is no cost to creating a registered retirement fund gift
• Your gift can be kept private, as these types of gifts are not part of your will
• The balance of your retirement fund is not included in probate
• Generate a charitable tax receipt to offset taxes that become due in the year of death, when the remaining funds in most RRSPs/ RRIFs become fully taxable as income

How to arrange a gift of RRSPs and RIFFs to U of T:

Fill out the beneficiary designation clause of your RRSPs and RRIFs, using the legal name “The Governing Council of the University of Toronto.” Our BIN number is 108162330RR0001.

How to make an immediate as well as a future impact:

If you find that you do not need the required annual withdrawal from your RRIF, you may consider donating this annual amount to U of T to offset your taxes.

Next steps:

Request info

Would you like personal assistance? Speak with the gift planning team.

Life Insurance

Make a difference in an affordable way while building up a significant future legacy.

• Reduce estate taxes
• Receive immediate tax benefit

A modest annual life insurance premium, paid over time, can result in a significant future legacy to a cause important to you.

Benefits of a gift of life insurance:

• Affordable annual premiums, which convert to a large gift
• Receive a charitable tax receipt
• Gifts of life insurance are not included in probate

Example of how a gift of life insurance works:

Risha takes out a new life insurance policy for $125,000, naming “The Governing Council of the University of Toronto” (BIN number 108162330RR0001) as owner and beneficiary of the policy. Her annual premium of $1,050 has an approximate after-tax cost of $525 per year. The legacy amount is $125,000.

Three ways to donate life insurance:

• Donate an existing policy: receive a charitable tax receipt for the net cash surrender value and any premiums paid after the donation date.
• Donate a new policy: receive a charitable tax receipt for any premiums paid after the donation date.
• Assign U of T as the beneficiary of your individual or workplace insurance policy: your estate receives a charitable tax receipt.

Next steps:

Request info

Would you like personal assistance? Speak with the gift planning team.

Charitable Gift Annuities

Secure a guaranteed income stream for life while immediately benefiting important causes.

• Receive income for life
• Receive immediate tax benefit

Due to how they are structured, charitable gift annuity rates typically provide a higher return than other investments. They allow you to give immediate support to U of T while ensuring a secure income stream for your lifetime.

Benefits of a charitable gift annuity:

• Receive a guaranteed income for life
• Annuity rates are typically much higher than the return on guaranteed income investments
• Depending on your age, a substantial portion or all of the annuity payment is tax-free
• Receive a charitable tax receipt for the gift portion of the payment

Example of how a charitable gift annuity for an 80-year-old works:

Kathleen made a transfer of $75,000, creating annual payments to her of $3,951, guaranteed for life. Meanwhile, $25,000 of the funds became the gift portion and the amount of her charitable tax receipt.

How to make a gift of a charitable gift annuity:

• Contribute a lump sum to the University of Toronto for a guaranteed lifetime annual annuity payment.
• The University will use a portion of the total contribution to purchase the annuity from a licensed insurance company.
• U of T retains the balance as an immediate donation, for which you receive a charitable tax receipt.

Next steps:

Request info

Would you like personal assistance? Speak with the gift planning team.

Charitable Remainder Trusts

Arrange your legacy now by establishing a trust and enjoy the interest income for life.

• Receive income for life
• Receive immediate tax benefit

A charitable remainder trust allows you to make a legacy gift now and receive an immediate charitable tax receipt, while enjoying the interest income for life.

Benefits of a charitable remainder trust:

• Receive lifetime income from the donated asset
• Receive a charitable tax receipt for the net present value of the assets in the trust
• Your gift can be kept private, as these types of gifts are not part of your will
• Charitable remainder trusts are not included in probate
• If all or the majority of your estate is intended for charity, a charitable remainder trust ensures you maximize your charitable tax receipts

How to establish a charitable remainder trust:

• Irrevocably transfer assets (a sum of money, securities, personal or real property) into a trust to be managed by a trustee, such as a financial institution, yourself, a lawyer or other individual.
• In the trust document, name yourself or others as the beneficiary of the interest income and name “The Governing Council of the University of Toronto” (BIN number 108162330RR0001) as the remainder beneficiary.

Next steps:

Request info

Would you like personal assistance? Speak with the gift planning team.

Gifts of Residual Interest

Transfer the title of your property for an immediate tax benefit while retaining its use for your lifetime.

• Receive immediate tax benefit

When you make a gift of residual interest, you donate your personal property, such as real estate, to the University of Toronto now and continue to use it for the rest of your life.

Benefits of a planned gift of residual interest:

• You continue to use the property for life
• You receive a charitable tax receipt for the net present value of the property when the gift is made
• Your gift can be kept private, as these types of gifts are not part of your will
• Gifts of residual interest are not included in probate
• If all or the majority of your estate is intended for charity, a gift of residual interest ensures you maximize your charitable tax receipts

Next steps to make a planned gift of residual interest:

Please contact us at 416-978-3811 or email michelle.osborne@utoronto.ca to set up a gift of residual interest. At the end of the term of the agreement, typically upon death, the University will either liquidate the property or add it to its assets, depending on your agreed upon wishes.

Gifts In Kind

Donate personal property such as books, real estate or art to enhance academic research or facilities.

• Reduce estate taxes
• Receive immediate tax benefit

A wide range of non-cash donations, such as books, real estate, artwork, special equipment and other tangible personal property, are commonly referred to as gifts in kind.

Benefits of making a gift in kind:

• Receive a charitable tax receipt for the appraised, fair market value of the property determined on the day the gift is made
• Flexibility to make the gift during your lifetime, or through your estate by including instructions in your will

How to make a gift in kind:

Gifts in kind can be designated to any area of the University, such as U of T libraries, galleries, programs, faculties, schools, departments or divisions. When the donation is made, the University will either add the donated item(s) to its collections or liquidate the asset, depending on a mutually agreed-upon course of action.

Next steps:

Please contact us at 1-800-463-6048 or email michelle.osborne@utoronto.ca to set up a gift in kind. It is important to consult with our office before arranging this type of bequest to ensure that it supports U of T’s academic priorities.