Simply stated, Planned Giving means planning to make a gift in the future. Your commitment is made now, with the transfer of your gift happening at a later date. Some of the ways in which you may make a planned gift are through a bequest, life insurance, cash, stocks, art and real estate. Using financial planning, your estate may enjoy a tax advantage while you make a significant difference in your community.

Gift Planning is your opportunity to make a lasting contribution that will maintain and sustain our health care at the Aberdeen Hospital. As a supporter of the Aberdeen Hospital Foundation/Aberdeen Hospital Trust, you may wish to consider planned giving as a means to help ensure that the Aberdeen Hospital remains a top notch facility, "the envy of all other Hospitals".

Let's take a look at some different opportunities that are available for you:

• Gifts of Cash: An outright gift of cash is certainly the simplest method of giving. When you make a cash gift, you receive a gift receipt for the amount of your gift, and you receive the satisfaction of knowing that your gift will be used to help a Pictou County family or someone close to you that requires care at the Aberdeen Hospital.

By choosing the Aberdeen Hospital Foundation you will help to purchase the much needed equipment that is above and beyond basic health care which can improve patient care.

A gift to the Aberdeen Hospital Trust can be shared in many ways such as securing a specific piece of equipment which may be designated to areas such as intensive care (ICU), diabetic clinic or providing education for patient care givers

• Gifts of Securities: Gifts of securities are gifts of publicly traded stocks, bonds, and mutual funds. Donors of publicly traded securities to the Foundation /Trust pay tax on only 33.33% of the capital gain (instead of 66% of the capital gain if the securities are sold). The gift receipt issued is based on the value of the securities at the close of business on the day of transfer. These gifts may be made to either the Aberdeen Hospital Foundation or the Aberdeen Hospital Trust. For more information please contact the Foundation office.

• Bequests: Planned gifts are most often deferred gifts including the most common type, which is a bequest in your Will. Your estate will receive a charitable credit, when the gift is made to the Aberdeen Hospital Foundation/Aberdeen Hospital Trust after your death.

When you make a bequest to charity, your estate is entitled to a gift receipt for the full value of the bequest. If the total bequest exceeds 100% of the net income on your final tax return, the excess may be carried back to the previous tax year up to 100%of your net income for that year

A Bequest can be for an unrestricted or designated gift in the form of cash, property, or securities. It can also take the form of a "residual legacy" whereby a charity receives all or a portion of whatever remains of your estate after all debts, taxes, expenses and other bequests have been dispensed. Should you wish to make a bequest through your will, you can contact a lawyer to assist you with the appropriate legal wording.

The benefits to you include the use of your assets during your lifetime, your estate receives a tax credit when the gift is made after your death, and there are many options to ensure that your bequest is personally meaningful

Leaving gifts to the Aberdeen Hospital Foundation/Aberdeen Hospital Trust in your Will can provide significant resource, which will have a major impact on the work of the Aberdeen Hospital. For more information about the Aberdeen Hospital Foundation/ Aberdeen Hospital Trust please contact the Foundation office.

• Life Insurance: Did you know that a relatively small annual contribution used to pay premiums could provide a substantial gift to the Foundation/Trust for the future. A tax receipt will be issued annually to you for tax purposes. The Foundation/Trust will receive the sum assured at your death, tax free, creating a much larger gift than the total of your contribution.

Your gift for the Aberdeen Hospital Trust may be designated to a specific area at the Hospital. If you choose to gift the Aberdeen Hospital Foundation the gift will help to purchase equipment that is above and beyond basic health care.

There are a number of ways to give a gift of life insurance. Here are a couple of popular ways:

• Name the Foundation/Trust as the owner and beneficiary of the policy.
• Name the Foundation/ Trust as the beneficiary of the policy.

The benefits to you would be a tax receipt, significantly reducing the cost of the policy (if certain conditions are met). You pay for the gift in small installments over several years and your gift doesn’t reduce the amount of money in your estate available to your family.

• Gift Annuities: A gift annuity is a unique way to give, which allows you to donate while receiving income from your gift for the rest of your life. You may also be able to take advantage of a sizable tax credit. How it works is your gift to the Foundation/Trust is combined with a commercial annuity from a reputable life insurance company. The annuity payments are made to you for life and your spouse if desired. The Foundation/Trust receives, as a donation, the remaining portion of the funds after the annuity has been purchased. You may be entitled to a tax receipt, depending on your age.

The benefits for you include helping a charity with a significant gift, receiving a guaranteed income for life, which may be tax-free to a certain degree. You may receive a tax receipt for a portion of your gift and you avoid probate fees because the annuity is outside your estate.

• Charitable Remainder Trusts: A charitable remainder trust is a deferred giving arrangement under which you may transfer property (cash, securities or real estate) to a trustee. You (and/or other beneficiaries) retain the right to the income from the trust either for life or for a specified number of years. The charity receives whatever remains in the trust (i.e. the capital) after the specified term, or after the death of the last beneficiary - whichever has been stipulated in the trust document.

Donors who establish a charitable remainder trust receive a charitable donation receipt for the present value of the future gift (the "charitable remainder") which the charity will receive when the trust terminates. That value is calculated based on actuarial tables, taking into account the value of the property transferred to the trust, interest rates, the age of each beneficiary, or the term of the trust if it is for a specific number of years.

If you are thinking about establishing a trust, you should review the tax implications with your estate planner, tax planner, or accountant. Drafting a trust document can be complicated, and requires the assistance of a lawyer to tailor the trust to your own circumstances.

The benefits to you include an immediate tax receipt for the present value of residual interest. You have the benefit of income from your assets throughout your lifetime, your trust may be professionally managed, and you can avoid tax on a portion of, and possibly all, capital gain.