A gift of residual interest is a legal arrangement that allows you to give property to Groves now and continue to use the property throughout your lifetime. For gifts of residual interest, the terms of the gift and the responsibilities for expenses will be specified in a deed of agreement prepared by a lawyer. If the item you are giving to Groves has increased in value since you bought it, you may incur a capital gain that is taxable. However you will also receive a tax receipt that will likely fully offset the tax owing. (Note: this does not apply to real estate that is your primary residence.) Tax Benefits You will receive an immediate tax receipt for Groves’s remainder interest based on the fair market value of the asset or property and the ages of the life beneficiaries. The value of the tax receipt can be as high as 70 per cent of the face value of the asset or property for donors in their 80s. Also, a gift of residual interest removes the property from your estate, which will reduce probate and other estate fees. Upon your death, Groves may retain the property or sell it and use the proceeds to benefit the area of your choice. Statement of Intent If you have made arrangements to make a legacy gift to the Groves Hospital Foundation, we request that you send us a completed Statement of Intent Form so that we may ensure the proper administration of your gift. |
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