Leave a Lasting Legacy

Many of our supporters leave it to specialized centers like us to handle their parrots in the case of their passing. If you plan on doing so, learn about the seven ways you can leave a Legacy Gift. Before you do that, check out this video that explains what Legacy Giving or "Planned Giving" is

Seven Ways to Plan Your Legacy Gift

Parrot Partners Canada encourages you to speak with your financial planner to discuss which type of Gift Planning best suits your individual needs and goals.

Option 1

Gift of Charitable Remainder Trusts

Charitable remainder trusts provide flexibility when planning your Estate and offer a means of directing your assets and making future gifts to a charitable organization you support, such as Parrot Partners Canada.

A charitable remainder trust can be funded with cash, securities or real estate. Assets are placed with a trustee —an individual or entity capable of managing the trust expertly. You receive the income generated by the assets in trust, according to the terms set out at the time the trust is established. The capital remains intact, however, and Parrot Partners receives the amount you placed in trust after your death. It is also possible to establish a trust that provides income to your surviving spouse. In this instance, the property would pass to Parrot Partners only after both spouses have died.

Because charitable remainder trusts are irrevocable gifts, the donor is usually entitled to a donation receipt when the trust is created. The receipt amount is based on the present value of the remainder interest (usually 20 - 60% of the value of the property), determined by the fair market value of the assets, interest rates, the donor’s age, and the specifics or duration of the trust.

A financial advisor can help you determine how to establish a trust that best suits your wishes and circumstances.

It enables you to support causes which you believe in, while still providing for those you care about most. - You may want to ensure that you provide sufficiently for your spouse after your death. However, you may also wish to make a significant contribution to the work of Parrot Partners Canada. You can establish a trust that will pay a reliable income to your spouse. Upon your spouse's death, the capital in the trust will go to Parrot Partners as you wished.

A trust provides for expert financial management and steady income. This can alleviate concern while ensuring reliable funds for you, your surviving spouse or other heirs.

The trust property is removed from your Estate. This reduces probate fees and ensures that your charitable gift cannot be challenged, as it could in your Will.

The charity will not be taxed on any capital gain, whether the assets are sold by the trustee, or eventually distributed to the charity and then sold. In addition, as the donor, you are only responsible for the capital gain that is attributable to the remainder interest.

You can receive tax benefits for the gift during your lifetime - Because charitable remainder trusts are irrevocable gifts, you may qualify for a charitable donation receipt at the time the trust is established. Commonly, a tax receipt is issued for the value of the residual interest that belongs to the charity.

A charitable remainder trust can provide flexibility when planning your Estate, allowing you to meet your obligations to loved ones while enabling you to leave a legacy to Parrot Partners. By planning your gift, your generous forethought will help Parrot Partners continue to help people and their parrots and remain a vital facility of best resort and a ‘soft place to land’ for parrots whose owners are under going significant life changes and/or personal crisis.

Option 2

Include a Charitable Gift in Your Will

Two simple ways that you can put a charitable gift in your will.

You can name the residue of your Estate in whole or as a proportion using percentages. The residue is what remains after taxes, administrative expenses and your heirs have received their specific gifts or proportion. An advantage is that as your circumstances change, your Will does not have to be altered, as the proportion remains the same.

Sample wording: “I bequeath the residue of my Estate (or _______% of the residue of my Estate) to Parrot Partners Canada, 25 Industrial Avenue, Carleton Place, ON K7C 3V7- charity number: 81068 8135 RR0001.”

Another way is to name a specific amount.

Sample wording: “I give $_____________to support the work of Parrot Partners Canada, 25 Industrial Avenue, Carleton Place, ON K7C 3V7- charity number: 81068 8135 RR0001.”

A word about specific designations:

If you wish to designate to a specific Parrot Partners program, we recommend the following wording to ensure your legacy is realised, should that program no longer be in existence at the time the bequest is realized:

“If through the passage of time, a designated Parrot Partners program is no longer in place, I give permission to alter the terms of my Will to adhere as closely as possible to my original wishes; or if this is not possible, please direct my gift to the area of greatest need.”

IMPORTANT NOTE: The information contained in this booklet is not intended as legal or financial planning advice. Parrot Partners recommends that you consult a legal advisor and a lawyer when planning your Will.

Option 3

Gift of Life Insurance

Many people find that a Gift of Life Insurance provides an affordable way to support Parrot Partners.

Transfer ownership of an existing, fully paid up policy. You will receive a donation receipt for the cash surrender value just as if you had made a cash donation.
Sign over a partially paid policy. When you transfer ownership of a policy that is partially paid and name Parrot Partners as beneficiary, you will receive a tax receipt for the cash surrender value as well as for further premiums you pay on the policy.
Purchase a new policyand make Parrot Partners Canada charity number 81068 8135 RR0001 the owner and beneficiary of the policy. You will be entitled for charitable receipts for all the premium payments that you pay.

Option 4

Gift of Property

You can choose to give property.

Fair Market Value: Charitable tax receipts can be given for established fair market value at the time of the transfer of the property. An independent evaluation may be required to determine fair market value.

Real Estate: Houses, cottages, commercial buildings
Personal Property: Jewelry, antiques, art, vehicles, collections
Principal Residence: A charitable tax receipt is given for the fair market value which offset other taxes on your Estate. There is no tax levied on the principal residence itself.
Cottage or Other Real Estate: Revenue Canada levies tax on the capital gain of all other real estate assets. A charitable tax receipt can help to offset the tax on the gain as well as other taxes in your Estate.

Parrot Partners recommends that you consult a financial and/or legal advisor before making these important decisions.

For more information on how you can give a Gift of Property to Parrot Partners, please contact Judith Tennant at judith@parrotpartner.com

Option 5

Donate RRSPs and RRIFs

You Can Give Now

Simplest Case: Charitable tax credit offsets tax on the withdrawal.

This is an appropriate planning vehicle for individuals who have other assets e.g. stocks, GICs, bonds.

Giving RRSPs/RRIFs in combination with a gift of stock: The donor pays no tax on the capital gain on the stock. The donor receives a charitable tax credit for the full value of the stock gift. The tax credit offsets the tax on the RRSP/RRIF withdrawal, giving the donor the full money withdrawn.

Probate and executor N/A.

A significant charitable gift can be made while reducing the tax burden on the withdrawal through your charitable tax receipt for the gift amount.

Please note: There is a Revenue Canada withholding tax that applies. Under $5,000 it is 10%; up to $15,000 it is 20%; over $15,000 it is 30%.

Therefore, careful planning is required to realize the charitable gift that the donor desires to make.

You Can Use your Asset Until Your

Eligible gift receipt = Value on the date of

The charitable tax credit helps to offset the tax burden on the Estate.

The tax burden can be considerable for registered funds such as RRSPs and RRIFs. When you die, it is as if you cashed in your asset all at once and it is added to your taxable income. You could then be taxed at the highest income rate.

This is an appropriate planning vehicle for any individual with RRSP/RRIF assets.

Giving RRSPs/RRIFs in combination with a gift of stock:

The donor pays no tax on the capital gain on the stock. The donor receives a charitable tax credit for the full value of the stock gift. The tax credit offsets the tax on the RRSP/RRIF withdrawal, leaving the donor with money realized from the withdrawal.

No probate fees because it does not go through your Estate. You can name your beneficiaries directly on your RRSP/RRIF.

No executor fees.

Donor has full access to the funds during donor’s lifetime.

Can be multiple beneficiaries.

Can be a large gift for charitable work.

No Revenue Canada withholding tax on death.

Option 6

Gift of Stock and Securities

Parrot Partners gratefully receives gifts in the form of securities such as stocks and mutual funds. These securities must be transferred first to Parrot Partners, not cashed in, to receive the tax benefits.

Determining when and how to make a Gift of Securities and which securities to donate, will depend on your personal choice.

If you are considering making a gift via the transfer of securities we will provide you with a Letter of Direction for your broker to use in transferring the securities. Please contact Judith Tennant a copy of our securities transfer form and more information.

Option 7

Charitable Gift Annuities

A Parrot Partners charitable gift annuity offers you the ability to make a significant gift while enjoying income for life that is largely tax exempt.

Note: This is a gift type suited to people who are 65 years or better.

How a Charitable Gift Annuity Works

Disclaimer

The information outlined above is not intended as legal or financial advice.

It is not the intention of Parrot Partnerss to provide legal or financial advice. Parrot Partnerss recommends you discuss estate planning with your family, lawyer and/or financial planner. Legal and financial advisors can help you derive the most significant advantage from your gifts. We will be happy to work with your advisors to help you plan for tomorrow and receive maximum benefits today.

LEGAL NAME
Parrot Partners Canada

CANADA REVENUE AGENCY CHARITABLE NUMBER
Parrot Partners is a registered charitable organization (Charity # 81068 8135 RR0001)

BUSINESS ADDRESS
25 Industrial Avenue
Carleton Place, Ontario
K7C 3V7