Like annuities, a remainder trust or residual interest gift can ensure you income or the use of a property during your lifetime, while also providing tax relief.

"My husband had a stroke three years ago. I’ve been a supporter of the University in a small way for many years. I would like to make a significant gift, but I have to think of funding his care. The remainder trust allows me to do both."
Mrs. L.S., Toronto

How remainder trusts and residual interest work

Remainder trusts

Usually a remainder trust is funded with cash, equities, bonds, or real estate. You transfer your ownership of these assets to a trust. You retain the income for a specified period, usually your lifetime or the lifetime of a beneficiary, such as a spouse. At the end of this period, the "remainder" becomes the property of the University. A gift of this type will reduce the probate fees on your estate, since these assets no longer form part of your estate.

Residual interest

Gifts of residual interest usually involve the donation of a property such as a house. You would retain the use of the property for a predetermined period, usually your lifetime, and receive a tax credit for the present value of the property. At your death, or at the end of the specified period, the property would convert to the control of the University.