Remainder Trusts

Many people, especially seniors, would like to make a major gift to a charity such as the BUH Foundation, but may be concerned that such a gift will leave them short of their future income needs.

A Charitable Remainder Trust may be a method that will permit them to make their gift, without losing their financial security.

A Charitable Remainder Trust is a vehicle whereby the donor establishes a trust which gives a charity, in this case the BUH Foundation, irrevocable title to specified assets. The funds or other assets will be held by a trust agency and professionally managed. All of the income earned by the trust during the donor’s lifetime will be paid out to the donor, or in the case of a joint arrangement, to a named second party, as income subject to income tax.

A charitable donation receipt may be issued at the time of the transfer of the funds to the trust, based upon life expectancy and the appropriate discount rate for the gift. There are some specific conditions that must be met in order to make the gift eligible for a donation receipt and, as in all cases, the donor should obtain the advice of their own lawyer and/or financial advisor.

At the time of the death of the donor, or the death of a second person under a joint arrangement, the balance of the remaining capital becomes available for the work of Battlefords Union Hospital Foundation.

The one drawback is that charitable remainder trusts usually require an initial minimum investment of $100,000 of capital and are usually arranged through a trust institution.

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In all cases we suggest that a donor obtain advice from legal advisors.