Gifts of Residual Interest

Help to Secure Western's Vision for Tomorrow

The University welcomes gifts of real estate, books, art, special collections or other property. A gift of residual interest is a legal arrangement that allows you to give property to the University now and continue to use the property throughout your lifetime. For example, you might give a residual interest in a NEWS and continue to live there, or donate a residual interest in a painting and retain possession of it.

For gifts of residual interest, the terms of the gift and the responsibilities for expenses will be specified in a deed of agreement prepared by a lawyer.

If the item you are giving to the University has increased in value since you bought it, you may incur a capital gain that is taxable. However you will also receive a tax receipt that will likely fully offset the tax owing. (Note: this does not apply to real estate that is your primary residence.)

Tax Benefits

You will receive an immediate tax receipt for the University's remainder interest based on the fair market value of the asset or property and the ages of the life beneficiaries. The value of the tax receipt can be as high as 70 per cent of the face value of the asset or property for donors in their 80s. Also, a gift of residual interest removes the property from your estate, which will reduce probate and other estate fees. Upon your death, the University may retain the property or sell it and use the proceeds to benefit the area of your choice.

Some Option

• You can purchase a new policy.
• You can donate an existing policy.
• You can make Western the beneficiary of a new or existing policy.
• You may have a life insurance policy from your employer or former employer that you want to donate to Western.
• You may want to consider wealth replacement insurance.

Create Your Legacy

To ensure that your particular needs are met and that your wishes are honoured, you should consult your life insurance agent and any other pertinent advisors. You should also contact Gift Planning Office to let us know about your intentions. Not only can we assist you in making sure things move along smoothly, we also need to discuss how you would like the eventual proceeds from your insurance policy put to use. It is also important for us to know whether you wish to be recognized for your contribution or prefer to remain anonymous.

If you have made arrangements to make a planned gift to Western, we request that you send us a completed Statement of Intent (8K PDF) form so that we may ensure proper administration of your gift.