Bequests | Charitable Remainder Trusts | Life Insurance Policies | Endowments 

A Charitable Remainder Trust involves transferring investments or property to a trust that allows you to continue to have the right to use those assets or to receive all the income earned within the trust. Upon death, the Trustee of the Charitable Remainder Trust transfers the remaining assets in the trust to the charity named in the trust for whatever purpose or use you originally stipulated in the trust instrument.

The assets are transferred irrevocably into the Charitable Remainder Trust and the income is paid to you during your lifetime. While you are alive, the charity cannot access the investments or the property contained within the Charitable Remainder Trust.

What benefits do I gain from a Charitable Remainder Trust?

You benefit by gaining a charitable income tax deduction in the year the trust acquires the assets. The amount of the tax receipt would be based on your current age (the older you are the bigger the receipt), the asset value donated, and actuarial projections of the value of the asset upon your death.

In the event you cannot use the deduction in the year the trust is established, you can carry the unused deduction forward for up to five years, and apply it against subsequent income. Since the Charitable Remainder Trust is not a part of your estate, it also potentially lowers the Federal and Provincial tax on your estate.

Please contact your investment advisor to determine if a Charitable Remainder Trust is right for you.