St. Michael's College, U of T
Making a Gift: Legacy GivingLong popular in the United States, charitable remainder trusts are growing in use here in Canada as a way for donors to make a sizable commitment to the University of St. Michael’s College while maintaining the income benefit of their assets for the duration of their life.
Assets placed in the trust can include: cash, stocks, bonds, securities and other investments. The donor will receive a tax receipt for a portion of the value of the assets that is calculated using the donor's life expectancy and prevailing
| Age | Value of assets placed in trust | Value of tax receipt issued* | Income from trust (taxable) | Net gift to USMC upon death of donor(s) |
|---|---|---|---|---|
| 70 | $100,000 | $43,590 | negotiable with trustee | $100,000 |
| 75 | $100,000 | $52,525 | negotiable with trustee | $100,000 |
| 80 | $100,000 | $61,654 | negotiable with trustee | $100,000 |
| 85 | $100,000 | $69,882 | negotiable with trustee | $100,000 |
*approximate based on prevailing discount rates and actuarial tables
Similar to a charitable remainder trust except that the assets placed in trust are typically property such as real estate (a second property, cottage, or vacation property), works of art, a book collection, etc.
A fair market value for the property is determined at the time of the gift. Then the donor's age is taken into account and an appropriate discount rate is used to determine the tax receipt to be issued. The donor continues to enjoy the use of their property for life.
This information provided is general in nature, does not constitute legal or financial advice, and should not be relied upon as a substitute for professional advice. We strongly encourage you to seek professional legal, estate planning and/or financial advice before deciding upon your course of action.