You can
enjoy tax savings today, a substantial cash flow for
a number of years and ensure that a sizable future
donation goes to the Alzheimer
Society Niagara Foundation.
Charitable Remainder Trusts are legal agreements
that specifies how assets placed under the trust
will be managed by an assigned trustee. A charitable
remainder trust is an effective way to provide you
with an income for life and know that after your
lifetime, the remaining in the trust will be used by
the Alzheimer
Society Niagara Foundation.
Advantages:
You
receive a donation receipt in the year you set
up the trust, which will help reduce the tax you
pay in that year, and possibly for up to five
subsequent years
The
Trust will generate income for you, for as long
as you specify under the trust agreement. (A
portion of that investment income will be
subject to tax)
A CRT
removes the property from your estate, thereby
eliminating fees on those assets and
guaranteeing your privacy. In other words,
property held in a CRT does not form part of
your estate on death, therefore avoiding probate
fees
Charitable Remainder Trusts work best for donors who
are 70 or older, as the actuarial calculation of the
present value of the future interest to the charity
is higher. A CRT is of particular interest to people
of high net worth, who have the ability to donate
significant assets, and are in a high marginal tax
bracket. As there is no ability to encroach on the
contributed capital, the donor must have other
assets to rely on in the event income from the CRT
is insufficient. Trusts are subject to professional
set-up fees and annual administration costs. CRTs
are irrevocable and legally-binding. Consult your
legal and financial advisors for advice regarding
the creation of a CRT.