Trust funds
For individuals wishing to bestow large gifts to VON Metro Vancouver, the establishment of a charitable remainder trust may be an attractive planned giving option, particularly if during their lifetime they would like to secure both income and significant tax relief. Under the advice and guidance of trust and estates lawyers, a donor is able to establish a charitable remainder trust by transferring property to a trust. Upon this transfer, the donor is considered to have disposed of the property and he/she may realize a capital gain or loss. The trust documents instruct the trustee to pay all of the income earned within the trust to the individual, but requires the property to be transferred to the charity at some later date, which is usually upon the death of the donor. Once the charity is named as the beneficiary of the trust, it cannot be removed or revoked. After the donor’s death, the assets are passed on to the designated charity. If the donor has a spouse, the charitable remainder trust should be set up so that the property passes to the charity only after the death of that spouse.
Gifts of Securities
As of the passing of the May 2010 federal budget, donations of publicly listed securities are exempted from capital gains taxation, making this one of the most attractive ways to support VON. If you donate shares to VON Metro Vancouver directly, you will not pay any capital gains tax normally associated with such a sale of shares! You will receive a tax receipt for the full value of the donation but you are NOT taxed on any gain. VON can accept different types of securities, including bonds, publicly listed shares and mutual fund units. Consultation with a financial advisor is strongly recommended prior to initiating this type of donation, as this will ensure that the donor receives professional advice tailored to his/her personal financial and tax situation.
32
www.von.ca