Leave a Legacy Month in Canada: How to Ensure Your Estate Reflects Your Charitable Values

Every May, Canadians observe Leave a Legacy™ Month — a national initiative encouraging individuals to consider the impact they can make through charitable gifts in their wills and estate plans. It is a time to reflect not only on what we leave behind for our loved ones, but also on the greater legacy we can create for our communities and the causes we care deeply about.

In this blog, we explore how you can thoughtfully structure your legacy, maximize the impact of your gifts, and ensure your charitable intentions are fulfilled after your passing.

Why Charitable Estate Planning Matters

Canadians are known for their generosity. According to Statistics Canada, millions of Canadians donate to charitable causes each year. However, far fewer include charities in their estate plans. This discrepancy often arises from a lack of awareness about how easy and impactful it can be to leave a legacy through planned giving.

Leave a Legacy™ Month reminds us that estate planning is more than just distributing assets; it’s about ensuring your wealth supports what matters most to you. Whether it’s health care research, education, the environment, social services, or religious institutions, your estate can help shape the future of causes close to your heart.

What Does It Mean to “Leave a Legacy”?

Leaving a legacy means arranging for part of your estate to be donated to charity upon your death. This can take several forms:

• Bequests in your Will;
• Naming a charity as a beneficiary on a life insurance policy;
• Creating a charitable trust;
• Donating RRSPs, RRIFs, or TFSAs to a charity; or
• Establishing a donor-advised fund.

These gifts can be made in honour of your name or your family’s and can be tailored to match your financial goals, tax situation, and philanthropic vision.

Common Ways to Leave a Charitable Legacy

Here are some of the most common tools for planned giving in Alberta and across Canada:

1. A Charitable Bequest in Your Will

This is the simplest and most popular way to leave a legacy. You can include a specific dollar amount, a percentage of your estate, or a residual bequest (what’s left after other obligations are met) to one or more registered charities. Bequests can be:

• Unrestricted, allowing the charity to use the funds where they are most needed; or
• Restricted, earmarking your gift for a specific program or purpose.

2. Gifting Life Insurance Policies

You can name a charity as the beneficiary of a life insurance policy, or transfer ownership of the policy to the charity during your lifetime. Either option can yield tax benefits and enable you to make a larger charitable impact than you might be able to during your lifetime.

3. Donating Registered Accounts

Designating a charity as the beneficiary of your RRSP, RRIF, or TFSA allows those funds to bypass probate and flow directly to the charity upon your death. This method can also reduce the tax burden on your estate.

4. Creating a Charitable Trust

If you have significant assets, a charitable remainder trust allows you to retain income from those assets during your lifetime, with the remainder going to charity upon your death. This can be a good fit for those who want to receive income while planning a legacy gift.

Tax Advantages of Charitable Giving in Canada

One added benefit of charitable giving is the tax credit your estate can receive. When a registered charity receives a gift through your estate, your executor can apply for a charitable donation tax credit on your final income tax return (or the year preceding death, in some cases).

This can significantly reduce the taxes owed by your estate, leaving more for your loved ones and your chosen causes. Working with an estate planning lawyer and a financial advisor can help you design a plan that balances tax efficiency with your philanthropic goals.

Choosing the Right Charity

When deciding where your legacy gift should go, take the time to research potential recipients. Consider causes that align with your personal values and long-term goals. Look for registered charities with strong reputations and a history of financial transparency. You may also explore opportunities to support a specific program, initiative, or endowment fund.

If you have concerns about how your donation will be used, you can include detailed language in your Will to ensure your wishes are respected. You may also want to speak directly with the charity about your intentions and how your legacy can make the greatest impact.

How to Get Started With Legacy Planning

If you’re considering leaving a charitable gift in your estate, here are the steps to take:

Work With an Estate Planning Lawyer

Consulting with an Alberta estate lawyer ensures your documents are drafted correctly and in compliance with provincial laws. Your lawyer can help draft or update your Will, clarify the legal structure of your gift, and ensure your executor understands their duties.

Talk to a Financial Planner or Tax Advisor

They can advise you on integrating your charitable gifts into your broader financial plan and help maximize tax benefits for your estate.

Inform Your Family and Executor

Transparency is key. Let your loved ones and executor know your intentions to avoid confusion or disputes later. If necessary, include a Letter of Wishes to explain your motivations in more personal terms.

Contact the Charities You Wish to Support

Some charities have planned giving departments that can guide you through the process and help ensure your gift is structured in a way that meets both your needs and theirs.

Mistakes to Avoid in Charitable Estate Planning

While charitable giving is noble, there are some pitfalls to watch out for:

• Failing to update your Will after major life events or financial changes;
• Misnaming a charity, which can delay or prevent your gift from being distributed;
• Not clarifying restrictions on your gift, leading to misinterpretation or even rejection by the charity; or
• Overlooking the tax implications for your estate and heirs.

By working with professionals and keeping your estate plan current, you can avoid these common issues and ensure your legacy is protected.

Leave a Legacy That Lives On

Leave a Legacy™ Month is more than just a campaign — it’s a call to action. It’s a chance to think beyond your lifetime and consider the difference you want to make in the world. Whether you’re passionate about education, health care, the arts, or animal welfare, your legacy can be a powerful force for good.

DBB Law: Calgary Estate Lawyers Helping Albertans With Comprehensive Legacy Planning

At DBB Law, our skilled wills and estates lawyers help clients create detailed estate plans that reflect their values, protect their families, and support the causes they believe in. Contact us today to schedule a consultation if you’re ready to explore charitable giving in your estate plan. We’ll guide you through the legal, tax, and personal considerations involved in leaving a meaningful legacy. To discuss your estate plan, please call 403-265-7777 or contact us online.