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ARTICLE · 16 MAY 2023

Testamentary Charitable Giving And The Graduated Rate Estate: A Refresher

Miller Thomson
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Charitable gifts made by testators through their wills can take many forms: outright legacies or bequests; a gift of all or part of the residue of the estate...

CanadaTax
M. Elena Hoffstein
M. Elena Hoffstein
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Forms of testamentary charitable giving

Charitable gifts made by testators through their wills can take many forms: outright legacies or bequests; a gift of all or part of the residue of the estate; a contingent gift to be made in the event that a beneficiary predeceases the testator; a gift that is subject to an intervening life interest, a gift of a discretionary beneficial interest in a testamentary trust; and other gifts arising on death of donors.

In addition, a donor can designate a registered charity as the beneficiary of the proceeds of a life insurance policy, or a registered plan such as a RRSP, RRIF or TFSA.

The graduated rate estate

On December 16, 2014, amendments to the Income Tax Act came into effect which changed significantly the manner in which testamentary charitable gifts are dealt with under the Income Tax Act (Canada).

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