A Residual Interest Gift allows you to deed property to Canadian Hearing Services but continue to use and enjoy it during your lifetime and reduce your income tax.
About Residual Interest Gifts
A Residual Interest Gift is property deeded to Canadian Hearing Services which you retain and use for the rest of your life or a set term of years. You might give a residual interest in your cottage, for example, but continue to use it during your lifetime. This type of gift is usually given if you plan to give the property to Canadian Hearing Services through a bequest in your will but want to reduce income tax now, without any change in living arrangements.
How it works
- you give a property to Canadian Hearing Services and retain the use of it for life
- the property is appraised to determine its value
- a deed is drawn up and signed by you and Canadian Hearing Services
- you receive an immediate charitable tax receipt for the current value of the residual interest. The receipt amount is based on the anticipated number of years you retain a life interest in the property, current fair market value and a discounted rate.
- you continue to be responsible for real estate taxes, insurance, utilities and maintenance after transferring title
How you’ll benefit
- you provide continued support to CHS services and programs without loss of enjoyment of your asset
- you receive an immediate charitable tax receipt, thereby increasing after-tax income
- the asset has been removed from your estate thereby decreasing probate fees
- your gift can be honoured during your lifetime
A Residual Interest Gift can provide flexibility when planning your estate, allowing you to meet your obligations to loved ones while enabling you to leave a legacy to Canadian Hearing Services.
How to make a Residual Interest Gift to CHS
Seek financial and legal advice
We strongly recommend you seek professional advice to ensure your financial goals are considered, your tax situation is reviewed, and your Planned Gift is tailored to your circumstances.