A Tax Efficient Retirement Strategy

Tony Tassone discovered one of his clients was about to retire during an exploratory conversation about his overall financial plan. For Tassone, Director, Finance and Taxation with BMO Harris Private Banking, this type of fact-finding conversation is routine – a critical part of looking at the ‘whole picture’ when it comes to a client’s wealth plan.

When Tassone found out his client, an active contributor to his community, was about to receive a significant retirement package he knew a charitable donation would be a good tax move. The end of the year was closing in and his client had plans to travel abroad for the holidays. Tassone had to act quickly.

Setting up a private foundation would involve an investment of time as well as legal and administrative costs, but Tassone knew that Supporting Your Community could meet all of his client’s needs quickly and efficiently – and deliver the same tax benefits. He quickly arranged a meeting with the Toronto Community Foundation.

The client had a long-time commitment to homelessness. His daily commute to the office took him by a men’s hostel where he saw how many needy people were living on the streets. He spent his volunteer hours acting as a companion to the homeless and working on the advisory board of a local organization.

The client, who wishes to remain anonymous, was interested in establishing his own charitable fund because he wants “to leave a legacy and be sure that there is ongoing support for the homeless after he is gone.” He was also drawn to SYC because he knew it would be easier than trying to manage his own foundation.

Within two weeks Tassone’s client had his own charitable fund and a nice tax receipt.

Grants from the fund will go directly to Toronto hospices and re-training facilities that help homeless people get off the street.