PLANNED GIVING

Securities and Property

It is quite common for many high-net-worth individuals to have the bulk of their wealth tied up in a very small number of assets. Perhaps it is a family farm or other real estate holding. The individual may hold a number of stock options that are ready to mature, or may own marketable securities that have a low cost basis and significant capital appreciation.

Regardless of the asset type, you may be in a position to unlock some of the appreciation, significantly reduce the capital gains tax and thoughtfully exercise a philanthropic impulse, all through well-conceived charitable gift planning strategies.

An outright sale of appreciated assets (other than a principal residence) will produce a substantial capital gains tax liability.

People who own stocks, bonds or mutual funds are pleased when their investments have increased. Unfortunately, when such an investment is converted to cash the realized capital gain is taxable. You can decrease this financial impact by donating your publicly listed security directly to the Canadian Warplane Heritage.

Federal budget changes in 2006 have made donating publicly listed securities very attractive by eliminating the capital gains tax on such gifts as shares, bills, warrants, mutual funds and futures listed on stock exchanges.

Before deciding on any financial matters, it is best to seek out the advice of a professional financial planner.

For more information on the donation of securities and property, please contact Pamela Rickards, CWH Deputy Director at (905) 679-4183 ext 230 or e-mail: pam@warplane.com

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