Allows you to make a legacy gift to TCS, while still receiving the income generated from that asset.
How to establish a charitable remainder trust:
- Irrevocably transfer assets (a sum of money, securities, personal or real property) into a trust to be managed by a trustee, such as a financial institution, yourself, a lawyer or other individual.
- In the trust document, name yourself or others as the beneficiary of the interest income and name “The Trinity College School Foundation” (Canadian charitable registration number: 831549746RR0001) as the remainder beneficiary.
Benefits of a charitable remainder trust:
- Receive a lifetime income from the donated asset.
- Receive an immediate charitable tax receipt for the net present value of assets in trust.
- Privacy, as these types of gifts are not part of your will.
- Not included in probate.
John and Marilyn have $100,000 in a balanced mutual fund that generates $5,000/year in interest and dividend income. Based on their age the fund has a net present value of $80,000. By transferring their asset to a trust, the couple will receive a tax credit of $36,800 that can be used to offset their taxes payable for the next five years, while also receiving the $5,000 per year in income and making a legacy gift of $100,000 to TCS.