Charitable Remainder Trusts

A charitable remainder trust involves transferring property (such as cash, bonds, stock securities, mutual funds or real estate) into a trust whereby you retain a life interest in the property but make an irrevocable gift of the residual interest to a registered charity such as the University of Waterloo. Ensure a steady stream of income for your beneficiaries, and make a long-term impact at the University of Waterloo.

• You receive an income for life on the investment of the donated asset. 
• This type of gift is not subject to probate and estate fees.
• You can avoid challenges of your will as trust assets are not considered part of your estate.
• It can lower your income tax payable. A charitable tax receipt is issued upon transferring asset(s) to a trust that names the University as the capital and residual beneficiary for the present value of the asset(s).
• The five-year carry-forward of charitable tax credits provision allows effective tax planning while you are alive. The government offers favorable tax treatment on charitable remainder trusts – particularly when they involve appreciated publicly traded securities – allowing for significant capital gains benefits.