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  • Gift By Will

Gift By Will


When drawing up your will, you can choose to leave a legacy gift to a charity such as Make-A-Wish® Quebec.  It is a simple and accessible way to plan a gift, while having the option to change it in the event of important changes in your situation.


For tax purposes, in the event of your death, you will be deemed to have disposed of your assets, including your pension plans, non-registered investments (outside an RRSP), real property and private company shares. These deemed "sales" or "withdrawals" lead to a considerable increase in taxes to be paid by your estate. By providing a gift in your will, a tax credit will apply as a reduction to this important tax burden.


Example of a gift by will


Mrs. Wish is considering making a gift through a will to Make-A-Wish® Quebec. She owns an RRSP with a value of $250,000 as well as a rental property and many other non-registered investments. In order to simplify the calculations, let us illustrate the example of a $100,000 gift applied against the deemed "withdrawal" of her RRSP at the time of her death.


Taxable income from the deemed disposition of the portion of the RRSP donated at the time of death


Less:  income tax (at the marginal rate of 49.97%)


Sub-total:  amount available to the estate (without gift)


Plus:  tax credit for the $100,000 charitable donation



Less:  $100,000 charitable donation


Result:  total income tax payable in addition to the gift



With a gift through a will, it will cost you almost two times less to make a donation to a charitable organization. In fact, without a gift, the estate would have inherited an amount of $50,030, net of taxes. By adding a small tax bill of $1,770, you support Make-A-Wish® Quebec in the amount of $100,000 and all you have to pay is the total amount of $51,800. As a result, you contribute to the greater good through a direct gift to your favourite organization instead of leaving a heavy tax burden to your estate.