WINNIE QUINN, CHARITABLE GIFTS MANAGER
A mother’s health issue teaches a life lesson
A few years ago, my mother had macular degeneration—a major cause of visual impairment in older adults. It was diagnosed immediately and she received treatment within days. It saved her sight. Without treatment, she would have lost her sight within a few weeks. At the time, the treatment was not covered by our health care system. Several injections and follow-up visits cost a total of $4,100. She and our family are very grateful that she didn’t lose her sight though the cost for her was a shock and quite staggering.
This led me to do some serious thinking when recently I read a tax tip from an accounting firm saying that planning to make significant charitable donations in your will may not be your best option. It suggested instead that if you make them during your lifetime, you’ll reduce the value of your estate for probate purposes, reduce your executor fees, and realize tax savings earlier.
The last statement is true, for sure, but is it a wise idea to give your assets to charity now for immediate tax gains rather than through bequests in your will?
From 14 years of listening and talking to seniors (our donors) and, on a more personal note, my own mother, I feel that for moderate- or average-income seniors, this is not necessarily a wise idea.
It may be more prudent to hold on to some of your savings and name your favourite charities in your will and keep your savings in case you need them for the unknowns in your life—unknowns, particularly in your health care or future living arrangements.
The likelihood of having to pay for some form of medical care or aid devices is high. Today, the treatment my mother received for macular degeneration is covered by our provincial health plan. But some medical treatments and devices are not, and no one knows what we may need or will be covered by health insurance in the future. Seniors already have to pay partially for hearing aids, eyeglasses, walkers, canes and wheelchairs, and fully, for dental care. And from talking with many of you, I know retirement homes are costly yet a likely move for those who can no longer remain in their own homes.
Thus, it is not necessarily wise to give away significant assets to your favourite charities while you are living (for tax savings now and to save on probate fees on your estate) but rather it is wise to leave bequests in your will to those charities you care about. Hold on to some of your savings and instead pay the minor cost of updating your will now to include those charities that you would otherwise have given your savings to.
Leaving bequests in wills to those charities we care about during our life is a noble and wise choice. Making sure we have savings for those unexpected expenses that come our way is also a wise choice. Think of your future before giving away your assets during life.
To help you get started on making your will or updating a will you prepared some time ago, just fill in and return the coupon on the following page for a free copy of our Will Planner—or call me if you have questions. I will be pleased to hear from you. Our missionaries who risk life and limb to keep the Word of God alive in our poor and remote mission communities will be honored and grateful if you name Catholic Missions In Canada in your will. If you let us know of your gift, we can all rejoice that our Catholic faith will continue to be proclaimed in our mission communities long into the future. My mother, soon to be 91, is now healthy and active with perfect eyesight. She has spent the winter making quilts for a friend and very grateful to have her full vision back.
