Royal Victoria Regional Health Centre Foundation

Charitable Remainder Trust

Your client may choose to establish a charitable remainder trust to benefit RVH Foundation either during their lifetime (inter vivos) or through their Will (testamentary). This type of gift may be of interest to your clients who have significant assets and want to continue using the assets or income generated for their lifetime, or the lifetime of their surviving heirs.

For example, your client may choose to irrevocably transfer of $200,000 cash, securities, personal or real property, into a trust. The donated capital remains in the trust and cannot be touched during the term of the trust. The trust document will name an individual (the client or their designate) as the income beneficiary while RVH Foundation will be named as the remainder beneficiary. When the trust ends, the remainder will be transferred to the Foundation. RVH Foundation needs to be consulted prior to establishing a CRT to discuss the terms and conditions for it to agree to accept and receipt this type of donation.

A gift of residual interest is similar but usually involves the irrevocable donation of a client’s principal resident, cottage or recreation property. The client (and/or their designate) continues to use and maintain the property during their lifetime or for a fixed term. Upon completion of the term, RVH Foundation will sell the property and the proceeds will be used for the benefit of RVH. RVH Foundation must be consulted prior to establishing a gift of residual interest to discuss the terms and conditions for it to agree to accept and receipt this type of gift.

Benefits:

  • For a living trust, your client will receive an immediate charitable tax receipt for the current fair market/appraised value of the property that may be used to offset 75 per cent of net income, carried forward for up to five years
  • For a testamentary gift, your client’s estate will receive an immediate charitable tax receipt for the fair market/appraised value of the property that may be used to offset 100 per cent of net income, with carry back for one year
  • Your client/designate will retain the benefit of the asset for life or the term of the trust
  • Clients can make a substantial future gift for charity

Real Property/Real Estate

Your client may choose to make an outright gift of property or real estate to RVH Foundation that they not longer wish to retain or use. The Foundation will sell the property and utilize the cash for current program and services. This gift may be either current or deferred through one’s estate.

There may be capital gains associated with some types of donated property, with the exception of a gift of a principal residence or ecologically sensitive land. The donation receipt provided can help to offset any capital gains tax payable.

Benefits:

  • For a current gift, your client will receive an immediate charitable tax receipt for the appraised value of the property that may be used to offset 75 per cent of net income, carried forward for up to five years
  • For a testamentary gift, your client’s estate will receive an immediate charitable tax receipt for the fair market/appraised value of the property that may be used to offset 100 per cent of net income, with carry back for one year
  • Your client will have the satisfaction of know they’ve made a substantial gift to charity for the benefit of the community