Charitable Trusts
A charitable remainder trust allows you to receive an immediate tax receipt for a gift that Wellspring will receive in the future. The gift, in the form of cash, stocks, bonds or real estate is invested by your financial institution or trust company (trustee) to give you ongoing income for life from the trust and upon termination, the trustee pays out the remaining trust assets to Wellspring.
Benefits of Establishing a Charitable Remainder Trust
- Setting up a charitable remainder trust is an effective way to provide you with an income for life and know that after your lifetime, the property remaining in the trust will be used by Wellspring.
- A tax receipt is issued immediately upon transferring assets to a trust that names Wellspring as the capital beneficiary. A five-year carry forward provision allows you to plan for the most effective use of the tax credit during your lifetime.
- Assets in a trust are not considered part of your estate, therefore your gift will not be subject to probate, estate taxes, or challenges to your Will.
- A charitable remainder trust allows you to make a significant gift to Wellspring today and enables you to be recognized as a major benefactor to Wellspring during your lifetime.
Establishing a Charitable Remainder Trust
- A trust is created by irrevocably transferring ownership of assets to a trustee (your financial institution or trust company).
- A trust document is created naming Wellspring as the residual beneficiary and is signed by you and Wellspring.
- The present value of the residual interest is determined and Wellspring will issue a charitable tax receipt for this amount.
- You will receive income from the trust for life or a set term of years and upon termination, the trustee will pay out the remaining trust assets to Wellspring.
Please contact Julie Cookson at
julie@Wellspring.ca or 416-961-1928 for more information.