Principal Issues: 1. How do you claim a gift made by will if the gift is not received by the charity by the due date for filing the terminal return?
2. How do you value the gift if the property changes in value between the date of death and when the property is transferred to the charity?
Position: 1. For gifts that will be received later, provide a copy of each of the following:
- the will;
- a letter from the estate to the charitable organization that will receive the gift, advising of the gift and its value; and
- a letter from the charitable organization
2. The value used to determine the eligible amount of the gift is the FMV at the time of death.
Reasons: 1. Administrative position contained in the guide, T4011, Preparing Returns for Deceased Persons 2009.
2. Pursuant to subsection 118.1(5), the gift is made at the time of death.