A gift of publicly traded securities is one of the most tax-effective ways to support Western, now or through your Will. Making a gift of shares, bonds, bills, warrants, futures or units of mutual funds listed on a prescribed public stock exchange directly to Western may eliminate the tax on their associated capital gains.
In contrast, if you choose to sell appreciated securities during your lifetime, or if these assets are liquidated through your estate, tax must be paid on 50 per cent of the capital gains on those securities.
The capital gains tax advantage also applies to donations of publicly traded shares acquired through employee stock options. The shares must be donated within 30 days of the stock option being exercised.
- Western will issue you a donation receipt for the fair market value of the gift of securities to be used for tax purposes. The fair market value will be the closing price of the securities on the date the securities are received into Western's brokerage account.
- By giving the securities directly to Western, your taxable capital gain is eliminated.
- If your donation exceeds the amount eligible for a tax credit in the year your gift is made, the excess credit may be carried forward up to five years.
- If you leave securities to Western through your Will, your estate will receive the same tax benefits. Gifts made through your Will can be claimed up to 100 per cent of your net annual income in the year of death and the year preceding.
Quick and straight-forward
You can make a gift of securities during your lifetime or through your Will. To discuss your legacy gift planning options, contact Sheri Cole at 519 661-2111 x88856 or firstname.lastname@example.org.
Any gift of securities should be done in consultation with your financial or tax advisors.