Appendices

Part 1: For Both Trust and
Endowment Funds


Appendix A
Comparing Trust or Endowment Funds

(Copy out this form, one per organization you are checking out, to compare their services and fees.)

Institution Name and Contact Person

Telephone Number

Needs                                                        Y                Advantages        Disadvantages            Fees

Assistance with creation of fund?





Samples of forms and documents to evaluate?





In-house trust or endowment managers?





Staff willing to sit on advisory?





List of satisfied customers?





Detailed accounting of fees and expenses?





Other information?






Appendix B
Specific Wording for Donations to Charities Through a Will

The following is specific wording your lawyer may suggest to include in your personal will or a donor’s will. The sample clauses were prepared by Jim Hilbourne for the Canadian Association on Charitable Gifts in his November 4, 1998 article in Canadian FundRaiser. We are grateful for permission to reproduce it here.

Capital bequest with unrestricted use:

I direct my Estate Trustee to transfer as a gift to [Charity] the sum of _____ (or _____% of my estate or residue of my estate), to be used for such purposes in connection with the work of [Charity] as the Board of Directors may from time to time determine.

Capital bequest with restricted use:

I direct my Estate Trustee to transfer as a gift to [Charity] the sum of $_____ (or ____% of my estate or residue of my estate), to be used for.

Endowment income with unrestricted use:

I direct my Estate Trustee to transfer as a gift to [Charity] the sum of _____ (or _____% of my estate or residue of my estate), to be held in trust for at least 10 years and kept invested and the income from which shall be used for such purposes in connection with the work of [Charity] as the Board of Directors may from time to time determine.


Endowment income with restricted use:

I direct my Estate Trustee to transfer as a gift to [Charity] the sum of $_____ (or _____% of my estate or residue of my estate), to be held in trust for at least 10 years and kept invested and the income from which shall be used for__________.

Reversionary bequest with unrestricted use:

I direct my Estate Trustee to transfer as a gift to [Charity] any bequest or residuary gift contained in this will to any charitable organization or institution or to any person or persons in trust for such organization or institution that cannot take effect in whole or in part because of any legal prohibition or because of the inability of any such organization or institution to take the gift for any reason whatsoever. Such gift is to be used for such purposes in connection with the work of [Charity] as the Board of Directors may from time to time determine.

Contingent bequest with unrestricted use:

If any of the beneficiaries names in this will should die before becoming entitled to receive their distributive share of my estate, I direct my Estate Trustee to transfer the share to which such beneficiary would otherwise have entitled to [Charity] to be used for such purposes in connection with the work of [Charity] as the Board of Directors may from time to time determine.

Specific property bequest:

I direct my Estate Trustee to transfer to [Charity] my [specific property].

Registered funds bequest with unrestricted use:

I direct my Estate Trustee to transfer to [Charity] the sum of $_____ (or _____% or all of any assets which I may own) which are registered either as a RRSP or RRIF, to be used for such purposes in connection with the work of [Charity] as the Board of Directors may from time to time determine.

Registered funds bequest with restrictions:

I direct my Estate Trustee to transfer to [Charity] the sum of $_____ (or_____% or all of any assets which I may own) which are registered either as a RRSP or RRIF, to be used for.

Power to vary purpose clause:

(This clause empowers a charity to vary the purposes for which a gift is used if circumstances make it impossible or impracticable to carry out the original wishes or purposes of the donor. It is recommended that this clause be used whenever a restricted or designated gift is made.)

If, in the opinion of [Charity’s] Board of Directors, it should become impossible, inadvisable or impracticable to apply the said bequest’s funds or income for the said purposes, the Board of Directors shall use the said bequest or such part thereof in such manner as in its discretion may seem to be to the best advantage of [Charity] for other purposes related as closely as possible to the spirit and intention of this gift. However, if in the opinion of the Board of Directors it is impossible, inadvisable or impracticable to utilize the said or such part thereof for such related purposes, then the Board of Directors shall use the said bequest or such part thereof for such other purposes of [Charity] as the Board of Directors may determine.

(Not in original by Canadian Association on Charitable Gifts) Named endowment: Modify clauses above to permit a Charity to open up a named endowment in the name of the donor or other person as directed by the will but include the following provision in case the minimum to open a named endowment has increased since the person prepared their will.

I direct my Estate Trustee to open a named endowment fund with the transfer of $_____. If such amount is not sufficient to open a named endowment at the time of my death then I direct my Estate Trustee either: (a) add to the transferred funds from the remainder of my estate the amount required to open such a fund; OR (b) instruct the charity to use the funds for a smaller named endowment or, if that is not possible, then the Board of Directors shall use the said bequest or such part thereof for their general endowment fund for such other purposes of [Charity] as the Board of Directors may determine. The Trustee has complete discretion to choose between option (a) or (b).


Appendix C
Last Will and Testament and Settling the Estate

Wills are required in Canada if you want control over how your assets will be distributed after your death. Without a will, provincial law determines who will get what and how much will go to governments. To adequately plan for your financially dependent loved one’s future finances, you must have a will.

This book is not a summary of preparing wills but this appendix should help you with the basics. The resources listed at the end of the book may lead you to other useful resources beyond your own lawyer. Always have a lawyer prepare your will to ensure all of your wishes are properly included.

Wills should be revised or rewritten if any of the following occurs:

Separation or divorce.

Death of a spouse, child, grandchild or other significant beneficiary as well as death of an executor, trustee or guardian.

New marriage (existing will is invalid upon a marriage).

Move to a new province or country.

Long-term illness or disability of a child or grandchild (you may consider a trust fund for them).

Changes in probate, estate planning, tax laws or regulations that affect your situation.

Changes in beneficiaries.

Increases or decreases in bequests to beneficiaries.

Changes in the terms of testamentary trusts.

Choosing an Executor

An executor is someone will have to handle all of the financial and legal affairs after the person(s) named in the will dies. Choose one, or several people to handle these affairs. Make sure they are willing to do this work as it can be time consuming and frustrating dealing with all the bureaucracies involved. You may choose a family member or friend to be the executor with, or without, the assistance of a lawyer to handle most of the paper work.

Executor’s Responsibilities

The Executor will need a copy of the will and the ability to get at the original to settle your estate. They should meet with the deceased person’s lawyer, if any, and with co-executors to divide the work. They should begin to record the costs of getting professional help that will be paid out of the estate.

The Executor must generally:

Help with arranging the funeral, as required by the family, including notifying others of the death.


Contact the deceased main bank, trust or credit union to provide money for the family’s immediate living expenses. Note: Do not make any disbursements listed in the will until you know there will sufficient assets to settle all debts, including income taxes.

After the immediate needs are met, they should:

Decide whether probate is necessary, i.e., in very modest estates a will may not have to be probated. However, if property or other larger assets are involved, the will must be probated.

Probating a will involves presenting formal proof before the proper officer or court that a person’s will is their true last will and confirms the executor(s) named in the will. The executor receives a Grant of Probate, also called Grant of Letters Probate and Letters Probate, known in Ontario as Certificate of Appointment of Estate Trustee with a Will. In Quebec, probate is only applicable for a will not in notarial form.

Not all wills require probate. If you are the executor, check with your provincial regulations and/or an estate lawyer to help you through this process.

If probate is necessary: (a) make an application to the court to probate the will (or have a lawyer do this for you) and (b) upon receiving ‘Letters Probate’ from the court stating that the last will and testament is approved by the court and you are the executor, you may begin to deal with the assets and liabilities as required by the will and by law. For example, you will need notarized copies of the probate papers to access assets in banks and trusts.


Locate and record vital information including the original will; names, addresses, birth dates, contact numbers and e-mails for the deceased, immediate family, deceased person’s parents and siblings; beneficiaries in the will, on RRSPs, and on insurance policies.

Identify, record and protect all assets and liabilities of the estate including all cash, jewellery, collectibles, deeds, securities, stock certificates, mortgages, insurance policies, business interests, debts owed to the deceased, debts of the deceased, other liabilities and to secure, protect, insure and/or store assets as required. Write out the appropriate information for each to identify them completely. Notify the property insurance company of your efforts to ensure proper coverage. Note: Jointly held property or bank accounts, some insurance policies and trusts are usually outside the estate process and should not be identified as part of a person’s estate for probate purposes. However, they should be identified and located for record keeping purposes.

Make a list of the assets and liabilities of any business (including farms, self-employed businesses and partnerships) using the business’s accountant to help you. Either help keep the business going (as per the will) or shut it down using the help of professionals and/or business partners as necessary.

Contact all banks, trust and credit unions regarding the deceased (including joint account holders) and close all solely owned accounts. You will probably also need to open a separate account in the name of the estate to cash cheques and make payments including income taxes, credit card balances, outstanding bills, and to pay for expenses such as the funeral, legal fees, accountant’s fees, etc.

Locate all safety deposit boxes, itemize the contents of and disperse contents according to the will, and then close the boxes.

Claim benefits from life insurance policies, veteran’s affairs, Canada Pension, company and/or pension benefits and outstanding salaries.

Advertise, if necessary, in appropriate newspapers to try and locate people or organizations owed money from the estate. Pay these debts out of the estate once all claims are in and you have verified the accuracy of the claims.

Notify the post office to re-address the mail as well as notify all organizations and individuals who send correspondence or bills to the deceased (utilities, telephone, cable, credit card companies, driver’s license, provincial government offices including health, driver’s license, insurance companies, charities, associations and professional affiliations the deceased had, unions, catalogue companies, Internet providers, newspaper and magazine subscriptions, etc.)

Cancel all credit cards after paying off the balance and destroy the cards.

Sell off undistributed assets as per instructions in the will or based on your authorized judgment and distribute profits accordingly.

Verify ownership of any homes, cottages, mortgages, cars, etc. Pay off outstanding debts including taxes and utility costs. Make sure properties remain insured until they are either transferred to heirs or sold.

Have the person’s accountant prepare their last income tax return or do it yourself if the estate is small.

Disburse the estate’s assets keeping detailed and accurate records. You may need to:

Notify beneficiaries of what they will receive.

Distribute bequests after all debts and other charges accounted for, and obtain releases from further liability from named beneficiaries.

Make interim distribution to residual beneficiaries such as charities.

Convey, sell or hold assets not specifically bequeathed such as real estate, automobiles, furniture, and securities until final distribution.

Set up trust funds as directed in the will.

Have a final sale of unbequeathed assets.

Have a final clearance from Canada Customs and Revenue Agency that all income taxes have been paid.

Have a final distribution of the estate.

Notify family members and professional advisors once estate is distributed.

Have a complete accounting of your administration of the estate and all fees incurred including your own fee and/or expense as Executor (perhaps described within the will).

If there is no will or an invalid will then:

Provincial laws will determine who are the heirs and what portion of the estate they will get through their intestate succession laws. The division differs between provinces but is divided, according to formulae, between spouse and children. If there are no spouse and children it usually goes, in order, to: parents; if neither parents survives, to brothers/sisters; if none survive to nephews/ nieces; if none survive to other next of kin; if none traceable, it all goes to the government.

The Court in your province will appoint an administrator (often a spouse or adult child) to take care of the estate who may not be a person you would choose.

The distribution of the estate may be delayed while an administrator is appointed and familiarizes themself with the estate.

The provincial court will appoint a guardian for your minor children who may not be someone you would have chosen. The court will also decide the children’s inheritance. If there are difficulties in your family, your children may be placed outside your family while a decision about guardianship is made.

Your estate may lose a significant portion of its assets through federal and provincial taxes.

So, once again, it is best to plan ahead by making a will to ensure your loved ones’ financial future is secure.

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Copyright © 2002 Harry van Bommel

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