Charitable Gift Clause (To Alternate Charity) (ON)

Summary

This clause is a charitable gift clause directing the trustee, in their absolute discretion, to pay a specific amount to an alternate charity if any of the registered Canadian charities benefitted by the testator no longer exist, have merged with another organization or have changed names. This clause includes practical guidance and drafting notes. Charitable gifts in a will can take the form of cash gifts, gifts of specific assets such as equity shares or land, proportionate shares of residue, remainder interests after a life interest and beneficiary designations of life insurance and registered funds. A will must be specific as to the gift being given to a charity in order to permit the executor to use the amount of the gift for purposes of a charitable donation credit in the year of death. The gift must be one made by will in order to be applicable in the year of death (Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 118.1(5)). In the case of a charity that has changed its name or...