A charitable remainder trust is a legal arrangement allowing you to receive the income from the trust during your lifetime and assign the trust capital as a gift in the future to the QEII Foundation. You receive a charitable tax receipt now for the calculated future value of the trust. When creating the trust you will name a trustee to manage the trust. When the trust is terminated, either upon your death or at end of the period of time stipulated by the trust document, the assets are delivered to the QEII Foundation.
If you fund the trust with appreciated property there will be a deemed disposition for tax purposes, but the tax credit from the donation receipt often will more than offset the tax owing.
Rita and Edgar, both aged 78, arrange a trust funded with $200,000 of bank stock they purchased many years ago for $100,000. They realize a gain of $100,000 of which $50,000 is taxable at 46.5% resulting in a tax owing of $23,250. The calculated present value of the future gift of $200,000 is $125,000, for which they receive a tax receipt. The resulting tax credit of $58,125 more than offsets the tax on the gain. During their lifetimes they received the annual dividends from the stock. Upon the death of the survivor the QEII Foundation receives the stock.
Charles O'Neil, director of gift planning at the QEII Foundation, is available at (902) 473-7932 or at qe2-hsc.ns.ca to explore all options available. All discussions are held in strict confidence and do not require any commitment on the part of the donor.
The information on this website is provided for the general information of donors and friends of the QEII Health Sciences Centre Foundation. It is not intended to be a substitute for professional legal or financial advice. As individual situations may differ you are strongly advised to consult with your own professional legal, estate planning and financial advisors before deciding upon a course of action.