Charitable Remainder Trust
Earn immediate tax relief for a future gift of assets, such as stocks, mutual funds or real estate.
If you have an asset that you would eventually like to donate to Royal University Hospital Foundation, but still need the income it produces today, a charitable remainder trust could be the answer. A trust allows you to donate the asset in the future, while retaining income from the asset during your lifetime.
How It Works
You identify the assets (e.g. bonds, stock securities, mutual funds, real estate) you want transferred to a charitable trust. RUH Foundation is named as the beneficiary of the trust, which means the 'remainder' of the assets will pass to the Foundation on your death.
The tax benefit to you is immediate. You receive a charitable tax receipt for the fair market value of the remainder interest. This is calculated by a Canada Revenue Agency formula that takes into account your life expectancy and the present value of the assets being transferred.
In addition to providing a lifetime income and worry-free management, a charitable remainder trust provides RUH Foundation with a beneficial tax treatment of capital gains if the assets in the trust grow in value. And that means more funds are available to build a legacy of care.
Planning Tip: Keep in mind that the transfer of assets is irrevocable. Also, weigh the total costs involved in administering the trust against the future reduction of tax and other benefits. As always, it is good idea to talk with your advisors.
For more information on planning your gift, please contact Bruce Acton, Director of Development, at 655-1984.
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