Gifts of Residual Interest
Similar to a charitable remainder trust except that the assets placed in trust are typically property such as real estate (a second property, cottage, or vacation property), works of art, a book collection, etc.
A fair market value for the property is determined at the time of the gift. Then the donor's age is taken into account and an appropriate discount rate is used to determine the tax receipt to be issued. The donor continues to enjoy the use of their property for life.
This information provided is general in nature, does not constitute legal or financial advice, and should not be relied upon as a substitute for professional advice. We strongly encourage you to seek professional legal, estate planning and/or financial advice before deciding upon your course of action.
Long popular in the United States, charitable remainder trusts are growing in use here in Canada as a way for donors to make a sizable commitment to the University of St Michael’s College while maintaining the income benefit of their assets for the duration of their life.
Charitable Registration Number: BN 11927 9321 RR 0001