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Changes to Canadian Income Tax Act regarding planned gifts

  • 1.  Changes to Canadian Income Tax Act regarding planned gifts

    Posted 03-11-2015 02:25 PM
    Edited by Susan Simolunas 03-11-2015 02:27 PM

    Just received the February 2015 copy of Gift Planning in Canada. There is an excellent article on the new rules for testamentary charitable gifts under the Income Tax Act RSC 1985, c. 1 (5th sup.) (ITA). The article is pretty thorough.

    The new legislation introduces changes to the testamentary charitable gift regime for 2016 as to timing and recognition of charitable gifts for tax purposes. Donations made by Will and designated donations (RRSP, RRIF, TFSA and life insurance) will be deemed to be made by the estate at the time when the property is transferred to a charity and no longer will be considered to have been made immediately before the donor's death. The fair market value (FMV) of the gift for tax receipting purposes is to be determined at the time of the transfer of property rather than the FMV at the date of death.

    Carters Charity Law Bulletin also has an article on "Implications of the New Estate Donation Rules Introduced by Budget 2014." You can access it online here (PDF).

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    Susan Simolunas
    Communication Coor
    Association for Healthcare Philanthropy
    Falls Church VA
    (703) 532-6243
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