A Charitable Remainder Trust is a way of giving assets to Chalice through a trust agreement. A charitable remainder trust can be established by contributing bonds, stock securities, mutual funds or real estate to a trustee who holds and manages it. Please note: the transfer of assets to the trust is irrevocable.
A Charitable Remainder Trust might appeal to you if:
- You have an asset that you would like to eventually donate to charity, but do not want to part with it yet.
- You want your investments managed professionally.
- You prefer to remain in control in your lifetime. The trust retains the asset until death, at which point the charity receives the "remainder" of the property.
The benefits of establishing a charitable remainder trust are:
- Tax advantages. We issue you a charitable tax receipt when you transfer assets to a trust that names Chalice as the capital beneficiary. The five-year carry-forward provision allows effective tax planning while you are alive rather than the one-year carry back upon death. The government has allowed a beneficial tax treatment of capital gains on these gifts.
- Your trust can give you a lifetime income.
- Your decision is private.
- Trust assets are not considered part of your estate.
- Your gift is not subject to probate fees and other estate costs.
How to establish a Charitable Remainder Trust with Chalice:
- You transfer the assets to the trust, a legal document set up as a separate entity which holds them.
- Both you and Chalice sign the trust agreement.
- Once transferred, we will issue a charitable tax receipt for the fair market value of the remainder trust. (Calculated by a Canada Revenue Agency formula, that considers life expectancy and the present value of the property being transferred into the trust.)
As you consider a gift to Chalice, please consult a trusted professional to consider your financial goals, review your tax situation, and ensure your gift is right for your circumstances.
Contact our Planned Giving and Major Gifts team (Peter, Wilson, or Catherine) at 1-800-776-6855 or planagift@chalice.ca
Chalice (Canada) Charity Registration Number 13759 1012 RR0001
