Unlike a future bequest in your will, for which you get no tax benefit now, a charitable remainder trust (CRT) provides you with a donation receipt in the year you make your gift and you’ll also continue to receive the trust income for life. You can use cash, securities or real estate to make a gift to the Church now with a CRT. Placing the asset in an irrevocable trust also frees you from management responsibility and removes the property from your estate, guaranteeing your privacy and wishes.

The following example illustrates how it works.

Robert, 70, wants to establish an endowed fund at his parish in memory of his spouse but still needs the income. He transfers assets worth $250,000 to a CRT that generates net income of approximately $7,500 a year for life. When he funds the irrevocable trust, a donation receipt for $120,675* is issued (at a 50 per cent combined tax credit) creating tax savings of $60,337. The trust principal will be used to create the parish endowment after his death.

*The donation receipt represents the value today of the future gift (the "charitable remainder") on death. It is based on the gift amount, the age of the donor, and the current discount rate (the lower the rate, the larger the donation receipt). The amount of the donation which may be claimed annually is limited to 75 per cent of the donor's net income, with a 5-year carry forward.