Giving and Getting Something Back
Charitable Remainder Trusts
Gifts of Residual Interest
Charitable Remainder Trusts
A Charitable Remainder Trust enables you to make a substantial gift to the CSEG Foundation while enjoying an immediate tax benefit as well as income for life or for a specific term.
Benefits of Establishing a Charitable Remainder Trust
- The satisfaction of making a meaningful gift to the CSEG Foundation that is important to you – a particular program or the area of greatest need.
- At the time the gift is made, you receive a tax receipt for the net present value of the remainder interest.
- If the value of your gift exceeds 75 per cent of your net income in the year the gift is made, you may carry-forward the excess tax credit for up to five years.
- Depending on the structure of the trust, income payments may be made annually, bi-annually or monthly.
- You have fewer investment and management concerns.
- Depending on the size of the gift, you can establish an endowed fund and name it in honour of someone close to you to secure your personal legacy.
How to Establish a Charitable Remainder Trust
A charitable remainder trust can be established to benefit the CSEG Foundation during your life (inter vivos) by irrevocably transferring assets, such as a sum of money, securities, personal or real property, valued at a recommended minimum of $250,000, into a trust. The trust document names an individual (you or someone close to you) as the interest income beneficiary and names the CSEG Foundation as the remainder beneficiary. The CSEG Foundation should be consulted in advance of a charitable remainder trust being established to discuss terms and conditions required for acceptance and receipting.
Gifts of Residual Interest
A gift of residual interest usually involves donating your principal residence or other real estate, such as a cottage. You (and, if applicable, your spouse) continue to live in the residence during your lifetime(s) or for a fixed term. At the end of the term, the CSEG Foundation will sell the property when it is no longer required, and will use the proceeds for the designated purpose.
Benefits of a Gift of Residual Interest
- Retain the use of the property for a fixed term or your lifetime and, if you wish, for that of your spouse.
- Receive a charitable tax receipt for the net present value of the property when the gift is made.
- If the value of your gift exceeds 75 per cent of your net income in the year the gift is made, you may carry-forward the excess tax credit for up to five years.
- The gifted property is removed from your estate for tax purposes.
- The satisfaction of making a meaningful gift to benefit future generations of geophysicists.
- The CSEG Foundation should be consulted well in advance of establishing a gift of residual interest to discuss terms and conditions required for acceptance and receipting.