When you establish a Charitable Remainder Trust (CRT) with the Jewish Community Foundation of Calgary, you receive an immediate tax receipt and income for the rest of your life. A permanent legacy created in your name after your lifetime will support those community agencies and causes that have touched your life in perpetuity.
How it Works
A Charitable Remainder Trust is created when a donor irrevocably transfers assets (usually cash or highly appreciated stock) to a trust. The trust will pay income earned on these assets to the donor or other designated income beneficiary during his or her lifetime. Upon the death of the beneficiary, the “remainder” (i.e. the capital) will pass directly to the Foundation. The capital can be undesignated and directed by the Board to the general purposes of the Foundation, or used to build a permanent legacy in your name, supporting a field of interest or specific programs or organizations that are important to you.
As the capital of the trust (the amount that was originally contributed) is not accessible, you are entitled to an immediate donation receipt that can be used to reduce taxes. You enjoy tax savings during your lifetime compared to a bequest which benefits your estate after your death. Probate and other estate costs can be avoided.
The Benefits To You
- · During your lifetime, you benefit from the annual income flow generated from the gift
- · You will have the peace of mind of knowing that your gift is managed by professionals, with the capabilities of obtaining a higher return with relatively low risk
- · Depending on the specifics of the Charitable Remainder Trust, you receive a donation receipt immediately upon transfer of assets to the trust, providing substantial tax savings to you
- · You maximize the value of your donation by avoiding the costs of probate
Benefits to the JCFC
- In the short term, your gift increases the JCFC’s total pool of assets under management
- In the long term, your gift helps the JCFC build up a permanent fund of philanthropic capital to support the future development of a strong and vibrant Jewish Calgary
Please consult your tax or estate planning professional to determine what is best for you.