The Jewish Community Foundation of Montreal

Charitable Remainder Trust Calculator

For Individuals

Gifts Using Charitable Remainder Trust

A Charitable Remainder Trust (“CRT”) may be appropriate for a donor who wishes to make a donation and receive a partial charitable receipt immediately, but still desires to have a right to the future investment income earned from these assets.

The individual would be the income beneficiary of the trust for as long as they live and the charity would be the capital beneficiary on death. The individual will pay tax on the yearly income received from the trust. In the year of establishing the trust the donor would receive a donation receipt equal to the fair market value of the contribution to the trust. The amount of the donation receipt would be based on the present value of the contribution taking into consideration an appropriate discount factor and the donor’s life expectancy.

Assumptions:
1. The donor is a Quebec taxpayer.
2. Individual donor is in the highest marginal tax bracket (53.31% in 2019) and the full amount of the donation will be eligible for a tax credit at that rate.
3. Life expectancy used in the “Charitable Remainder Trust” and “Gifts of Life Insurance” scenarios are based on Statistics Canada most recent data.

The Toolkit Calculator is provided as an aid only and a donor should consult with a professional advisor before making a gift.

Consult with a professional advisor

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