• Charitable Remainder Trusts

    A Charitable Remainder Trust (CRT) involves the transfer of property (e.g. cash, securities, or real estate). Once established, a CRT will provide you with a guaranteed stream of income for your life or a fixed term. The Foundation receives the capital only upon your passing.

    Benefits to establishing a CRT 

    • You continue to receive investment income for life.
    • A tax receipt is delivered to you immediately for the present value of the gift, which can be applied to future or current income.
    • Your funds are professionally managed.
    • The trust assets are removed from your estate and therefore not subject to probate or other estate settlement fees (not applicable to Quebec) or claims by creditors.
    • A CRT is flexible: you can establish a trust using cash, securities, real estate, or other investments such as term deposits or certificates of deposit.
    • You avoid challenges to your Will because trust assets are not considered part of your estate.
    • Your trust agreement is kept private, unlike a Will, which could become a public document upon your death.

    CRTs are irrevocable; once established, they cannot be altered or rescinded. In addition, transferring property to a CRT is considered a taxable disposition at the time of transfer, and if the property’s value has appreciated, a capital gain is reportable by the donor. Donors may choose to reduce or eliminate the gain by electing to receive a donation receipt for any amount between the fair market value of the remainder interest and its cost base.