Who can give gifts of residual interest?
This gift appeals primarily to upper-income donors 60 years of age plus, with the optimum being 75 years of age or older. Usually the donor has extensive holdings and may be planning a bequest to a favourite cause but would like to reduce income tax in the present year without any change in personal living standards. A donor may wish to donate a residual interest in the donor’s principal residence, recreational property or other real estate that the donor wants to see preserved. How do I make such a gift? The property is appraised and the value of the residual interest is determined. Legal documents are signed by the donor and the organization and filed in the Land Title office. The organization (if it is a registered charity) issues a donation receipt for the present value of the donated residual interest. If appreciated property is donated, the amount of the capital gains must also be calculated. The property vests in the organization, subject to the life interest retained by the don
