I try to seize every opportunity I can to learn about art. In preparing today’s blog, I was intrigued to read about the UK’s Cultural Gifts Scheme and its relationship to estates.
The Cultural Gifts Scheme & Acceptance in Lieu allows UK taxpayers to donate important works of art and other heritage objects in return for a tax reduction, which includes inheritance tax. The donated work is then held for the benefit of the public or the nation at an eligible museum or gallery. According to this article from the Guardian, the Scheme was first introduced in 1910 as a way of allowing individuals to offset inheritance tax bills, and later, in 2013, to allow individuals to be able to make donations during their lifetime in order to offset future tax liabilities.
Any art admirer should have a look at the 2018-2019 Annual Report which provides a list of items that were received, along with some pretty pictures of the items :). It is a feast for the eyes and the senses. Some of the highlights include:
- a Portrait of the Emperor Charles V by Peter Rubens, which has gone to the Royal Armouries in Leeds
- a platinum and diamond necklace with black velvet ribbons, convertible to a brooch, made by Cartier in Paris c. 1908-1910, which has been allocated to the Victoria and Albert Museum
- 361 botanical drawings by the illustrator Florence Helen Woolward
- Bernardo Bellotto’s painting of Venice on Ascension Day, which settled £7 million of tax
- Damien Hirst’s Wretched War sculpture, given by the artist’s former business manager Frank Dunphy settling £90,000 in tax
In Canada, although art can be subject to capital gains, and possibly other taxes, it is possible for a donor to limit, or avoid the tax altogether, including by way of claiming a charitable tax credit. Individuals thinking about estate planning and/or donating art should seek the advice of a professional advisor to maximize the amount of savings.
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According to statistics posted on the Ontario Trillium Gift of Life Network website, there were a total of 1,546 persons waiting for an organ transplant as of June 20, 2016. According to beadonor.ca, 29% of Ontarians are registered organ donors, which is 3.5 million people out of an eligible population of 12.0 million.
I was touched when I read the recent commentary that was published by the Star, which was written by Beth and Emile Therien. Beth and Emile Therien are the parents of Sarah Beth Therien, who died 10 years ago and who revolutionized organ donation in Ontario.
When Sarah Beth died, organ donation was only available when a person had been declared brain dead. According to Sarah Beth’s parents, such deaths only occur in 1 to 2% of hospital deaths and Sarah Beth did not fit into this category of donors.
However, Beth and Emile Therien knew that their daughter was not coming back and they knew that she believed strongly in organ donation. With the help of the Ontario Trillium Gift of Life Network and the Ottawa Hospital, Sarah Beth became Canada’s first organ donor whose organs were donated after the withdrawal of life support, which is otherwise known as donation after cardiocirculatory death (“DCD“).
Since Sarah Beth’s death in 2006, 1,067 transplants have been performed in Ontario with organs that were donated after cardiocirculatory death. According to Beth and Emile Therien, one third of deceased donors in Ontario, today, are DCD donors.
Here on our Hull & Hull website, we have published a Toolkit for Legal Professionals which includes precedent letters to assist legal professionals in advising their clients about organ donation. This Toolkit was developed by Ian M. Hull, along with Sam Marr of Landy Marr Kats LLP, in consultation with the Ontario Trillium Gift of Life Network.
I would also like to take this opportunity to encourage anyone who is interested in registration, or in learning more about this topic in general, to visit https://www.beadonor.ca/ and https://www.giftoflife.on.ca/en/
Thanks for reading,
Listen to becoming an executor after death.
This week on Hull on Estates, Ian Hull and Suzana Popovic-Montag, discuss becoming an executor after death and three issues that must be addressed immediately.