Setting up a Trust or Gift Annuity
Charitable Remainder Trusts offer you a guaranteed lifetime income along with substantial, immediate tax savings.
A Charitable Remainder Trust is created when a donor irrevocably transfers assets (usually cash) to a trust and then specifies a charity or charities as the recipient(s) of these assets upon his or her death. The trust will pay income earned on these assets to the donor or other income beneficiary during his or her lifetime and then distribute the capital to the charity upon the death of this income beneficiary. As the capital of the trust (the amount that was originally contributed) is not accessible, the donor is entitled to an immediate tax receipt for the present value.
The benefits to you as a donor:
- You are entitled to a donation receipt that can be used to reduce taxes;
- You retain the income generated by the property;
- You are free from investment decisions;
- Probate and other estate costs can be avoided;
- As the assets pass outside of the estate, they are not normally subject to challenge
Setting up a charitable Gift Annuity
A charitable Gift Annuity allows you to take a sum of money and use it to make a gift to St. Paul's as well as generate an income for you the rest of your life. Often the gift annuity can be set up in such way that the income you receive is greater than the returns you currently see from this investment.
To learn more about a Charitable Remainder Trust or Gift Annuity, please consult your financial advisor or call 604-682-8206. You may also send an e-mail to sphfoundation@providencehealth.bc.ca