Does a charitable bequest provide a tax benefit?
For most people, yes. At the death of the donor, your estate is entitled to a donation receipt for the full value of a bequest, providing a significant tax credit on your final tax return. Here’s an example: (Margaret J), a widow, leaves $10,000 to the Canadian Warplane Heritage and the remainder of her estate to her two children. Her bequest results in a tax saving of $4,500 (assuming a combined tax credit of 45 percent). If she had left the $10,000 to her children instead of giving it to the Museum, taxes would have consumed $4,500 and only $5,500 would have passed to the children.
