Planned Giving

• Gifts that Give Back
• Bequest: Why Make a Will?
• What Happens Without a Will?
• Gift of Life Insurance
• Charitable Trusts
• Reinsured Charitable Gift Annuities

Gifts that Give Back

You can make a major gift to Saint Paul University and retain your financial security through retirement with gifts of charitable remainder trusts, residual interest arrangements and charitable gift annuities. These are life income plans that provide you with the opportunity to support the University while preserving income for you or your family.

Bequest: Why Make a Will?

• When you die, everything you own will be transferred to others.
• You work hard all your life to accomplish a nice life for your family, self and community — you invest time and money to make things the way you feel they should be. It is important to decide where you want your belongings, or “estate”, to go, such as to family members, friends, and organizations that you wish to benefit.
• You will want to express who should look after your minor children (guardian).
• You will want to express who should look after your “estate” or be your executor (or liquidator, in Quebec).
• A will may reflect your values in life and enable your work to continue after your death.
• In a will you can make statements but have the ability and right to change them as necessary.
• Provides financial security for loved ones and avoids high administrative costs associated with intestacy (dying without a will).
• Avoids delay in processing your estate and even more hardship on your family.
• Allows you to make a meaningful contribution to Saint Paul University and other organizations in which you have an enduring interest.
• Will minimize taxes and administration costs.

What Happens Without a Will?

• You die “intestate”.
• Your belongings are distributed according to provincial intestacy laws.
• Your minor children may not be placed with the guardian(s) you would have chosen.
• Your next-of-kin must apply to the courts to be your executor or liquidator.
• Your choices or wishes are not considered.
• The earnings of a lifetime could easily be depleted by taxes and unnecessary administration costs.
• There will be no donation to Saint Paul University or other favourite charitable organization.

The following will happen to your assets or “estate” if you do not have a will in place.

• If you are survived only by a spouse, 100% will go to your spouse.
• If you are survived only by your children, 100% will go to your children.
• If you are survived by a spouse and one child, the first $200,000goes to your spouse, and the rest is split equally.
• If you are survived by a spouse and children, the first $200,000 goes to your spouse, 1/3 of the rest goes to your spouse, and 2/3 of the rest goes to your children.

Gift of Life Insurance:

A gift of life insurance is a surprisingly easy way and, for many, the only way to make a substantial gift to Saint Paul University.

Below are listed three ways that a donor may give life insurance for the benefit of Saint Paul University:

1. Gifting an existing paid-up policy by changing the owner and beneficiary to Saint Paul University. The donor will receive a tax receipt for the full cash value of the policy, plus any accumulated dividends.
2. Gifting a policy on which a donor is still paying premiums and names Saint Paul University irrevocable owner and beneficiary. The donor will receive a receipt for the cash surrender value, if any. Further, as premiums come due and are paid, receipts for the amount of the premiums will be issued to the donor.
3. Designating Saint Paul University in a donor's will to receive the proceeds of a policy. In this type of format, the donor would not benefit from a tax receipt in his/her lifetime. However, in the future, when Saint Paul University receives the proceeds of the policy and if the policy is specifically mentioned in the donor's will, Saint Paul University will issue a tax receipt which will benefit the donor's estate. (Tax credit of up to 100% of net income in the year of death and year preceding death.)

Benefits:

• Life insurance is not subject to probate costs or administrative costs as the proceeds pass outside of a donor's estate. Having said this, from a tax perspective, since March 1996 it is now more advantageous to consider making your estate the beneficiary of the proceeds of a policy and making a bequest to your favourite charity. The tax receipt will more than likely offset any probate or administrative fees due on death.
• Irrevocable gifts of life insurance cannot be contested; the gift is guaranteed.
• For a relatively small tax-deductible investment — monthly, annual or lump sum premium payments(s) — a donor can make a major gift to Saint Paul University.
• The proceeds of an insurance policy can be designated for a specific purpose, i.e. scholarships/bursaries, Faculty of Theology, etc.
• Saint Paul University receives the insurance proceeds while the donor still ensures that other beneficiaries receive the full value of the donor's estate.
• Depending on the amount of coverage, an irrevocable gift of life insurance would allow a donor to benefit from both the knowledge of guaranteeing a gift in the future while receiving donor recognition through the Saint Paul University Recognition Program.

Charitable Trusts

Saint Paul University may accept two types of irrevocable charitable trust arrangements:

1. A remainder trust that pays the donor income from the assets (i.e. real estate, securities, cash) for life or for a number of years, and then distributes the principal to SPU;
2. a residual trust whereby an asset (personal residence, work of art, investment property) is donated today, but the donor retains the use of it during his/her lifetime.

Reinsured Charitable Gift Annuities

A gift annuity is an irrevocable transfer of money or other assets to Saint Paul University. A portion of the principal is used to purchase an annuity from an insurance company. The cost of the annuity is based on the donor’s age and income requirements. The remainder of the principal is considered an outright gift used for the purpose specified by the donor. The annuity pays the donor a guaranteed income for a specific time or for the remainder of the donor’s life. Upon the donor's death, SPU receives any remaining guaranteed income from the annuity, unless the donor has specified otherwise.

For more information, please contact the Alumni and Development Office at 613-236-1393, ext.2009, or diplomes@ustpaul.ca.