Many British Columbians include charitable gifts in their wills. For some, it’s a way to support a cause they care about. For others, it’s about leaving a legacy or reducing taxes. Whatever the reason, charitable giving is a common practice in estate planning.

In British Columbia, the Wills, Estates and Succession Act (WESA) sets out the rules for leaving testamentary gifts to registered charities.

This blog explains how this kind of charitable giving works, the benefits it offers, and the key issues to keep in mind.

1. What Is Charitable Giving in a Will?

A charitable bequest is a gift made through a person’s will that directs part of their estate to a specific charity or cause. These gifts can take different forms, such as:

  • Specific gift – for example, leaving $10,000 to the BC Cancer Foundation.
  • Residual gift – donating a share of what remains after debts, taxes, and expenses are paid.
  • Contingent gift – takes effect only if certain conditions are met (e.g., another beneficiary has died).

Gifts made through a will are called testamentary gifts. By contrast, giving during your lifetime is called an inter vivos gift. Each method has its own process, tax benefits, and implications for the level of control you have over your gift.

2. Legal Framework for Charitable Bequests

According to the WESA, charitable gifts in a will must meet specific requirements:

  • The charity must be clearly identified by its legal name and Canada Revenue Agency (CRA) registration number.
  • The will should designate the executor (the person responsible for carrying out your wishes) and their role in transferring the gift.

When leaving a charitable gift, precision is crucial. Vague wording or careless mistakes—such as using an outdated name, naming the wrong organization, or describing the gift too generally—can create confusion. This, in turn, can stir up disputes among beneficiaries, or even cause the gift to fail. Clear, accurate language ensures your wishes are respected.

3. Tax Benefits

One significant advantage of leaving a charitable gift through your will is the potential tax savings. Under CRA rules, charitable donation tax credits apply at death. Your estate can claim donations made through your will against up to 100% of your net income in the year of death and the year before.

This can significantly reduce the estate’s overall tax burden. For example, a large charitable bequest may offset taxes owing on registered retirement savings, investment gains, or other taxable assets. As a result, more of your estate goes to your chosen causes and beneficiaries, rather than to taxes.

Because the rules can be complex, your best bet is to seek guidance from both a lawyer and an accountant. Together, they can ensure your intentions are clearly set out and structured in the most tax-efficient way possible.

4. Common Mistakes to Avoid

When making charitable gifts through a will, careful planning is critical. It can help you avoid these common pitfalls:

  • Naming errors – Using the wrong or outdated charity name, or not including the CRA registration number.
  • Not accounting for changes – If a charity merges, changes names, or closes, your gift may fail unless your will addresses this possibility.
  • Failing to update your will – Major life events such as marriage, divorce, and the birth of children, can unintentionally cancel earlier bequests.
  • Overlooking tax planning – Missing opportunities to structure gifts in a tax-efficient way can reduce both the impact of the gift and what’s left for other beneficiaries.
  • Relying on DIY wills – Vague or unclear wording can cause disputes or even invalidate gifts.

For example, someone might leave 5% of their estate to a local animal shelter, while another person may donate publicly traded shares to a hospital foundation. Both approaches can be effective, but the planning details will differ.

5. Special Considerations

Certain situations can make charitable bequests more complex. In blended families, for example, spouses or children may bring a will variation claim under the WESA if they feel a will does not adequately provide for them. It’s therefore essential to ensure that charitable gifts don’t unreasonably reduce what dependents will inherit.

People who are looking to make a long-term impact may choose to create trusts or endowments. These methods of giving provide ongoing support to a charity. Others may prefer to donate non-cash assets such as real estate, securities, or even artwork. These types of gifts often have unique tax benefits.

The executor—the person appointed in your will to carry out your instructions—plays a crucial role. They are responsible for liquidating or transferring assets to the charity. Leaving clear, concrete instructions in your will can allow them to carry out your wishes as smoothly as possible.

6. How to Incorporate Charitable Giving Into Your Estate Plan

If you follow the correct steps, including a charitable gift in your estate plan can be relatively straightforward. First, choose the charity you want to support and decide what type of gift you want to make: cash, a percentage of your estate, or a specific asset. Next, confirm the charity’s full legal name and registration number. This will help avoid any confusion and stave off future disputes. Then, work with an experienced lawyer to draft or update your will, making sure your intentions are clear and legally valid. Finally, inform your executor and family of your gift so they understand your wishes.

Leaving a Generous, Lasting Legacy

Charitable giving through your will allows you to leave a lasting legacy while also offering significant tax benefits for your estate. With careful planning, your generosity can support the causes you care about long after you’re gone. However, errors and oversights, such as vague wording and outdated details, can undermine your intentions and even invalidate your gift. By seeking professional advice and drafting your will with the utmost care, you can be confident that your charitable bequest will be carried out exactly as you meant it to.

Contact CM Lawyers for Comprehensive Assistance with Estate Planning in Vernon, Salmon Arm, and Enderby

The experienced team of estate planning lawyers at CM Lawyers help clients in BC with their unique estate planning needs. We understand talking about the future can be uncomfortable, so we strive to reduce the stress of the unknown and clarify the estate planning process. If you have questions about making a charitable donation through your will—whether you are focused on the tax implications or on leaving a lasting legacy—our estate lawyers are ready to help.

CM Lawyers serves clients across the region from our offices in Vernon, Salmon Arm, and Enderby, including Northern Okanagan and Shuswap. To arrange a consultation with a member of our Wills and Estates team, please contact us online or call our Vernon office at (250) 308-0338, our Salmon Arm office at (250) 803-9171, or our Enderby office at (778) 443-5065.