On Our Own...Together


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Copyright © 2002 Harry van Bommel

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical copying, recording or otherwise, except with the prior written permission of the author or under license from the Canadian Copyright Agency.

Appendices

Part 4: Resources


Organizations and Useful Resources/References

List of Important Contact People

Each of the following professionals should have a specific expertise in estate planning, long-term financial planning, trusts and endowment creation and maintenance. The expertise required in these fields of law and investments is not something a professional can acquire quickly. If your own lawyer, banker, financial planner, or accountant have limited, recent expertise in these areas, ask them for a referral but do not let them ‘learn as they go’ with your financial future.

Financial Planner (list qualifications)

Lawyer (list qualifications)

Accountant (list qualifications)

Investment Firm Representative (list qualifications)

Third Party (e.g., Association for Community Living, a fund-raising association, a family group with special interest in long-term care of dependent loved ones)

This group may have either professional staff with expertise in meeting your long-term financial needs and/or members and volunteers with a personal expertise gained through personal experience that may be helpful to you. This group may also be able to recommend specific professionals whom they have entrusted with their investments. Regardless of their recommendations, shop around and compare to choose the best professionals for your specific needs.


Organizations

Canadian Association on Charitable Gifts, c/o CIMC, Suite 201, 1155 Young Street, Toronto, ON  M4T 1W2. (416) 934-3424. Finance@missioncanada.ca. A national organization to assist charities in preparing consistent, standard gift annuities.

Canadian Center for Philanthropy is Canada’s national fundraising membership organizations with resources, online database and publications including the Front and Centre newspaper. Suite 700, 425 University Avenue, Toronto, ON  M5G 1T6. (800) 263 1178 or www.ccp.ca

Canada Customs and Revenue Agency (formerly Revenue Canada) has legal and regulatory information on their site about tax implications for individual donors and for not-for-profit and charitable organizations. www.ccra-adrc.gc.ca/taxcredit/menu-e.html. Its web site also has information on trusts and income tax returns for trusts www.ccra-adrc.gc.ca/tax/trusts/menu-e.html. Check this site for up-to-date information on taxation concerns for trusts.

Canadian Government’s general site with links in all areas of taxation for charities and not-for-profits as well as on health, housing, legislation, and reports. www.gc.ca

Charity Village is a Mississauga, Ontario based not-for-profit whose web site is packed with helpful information for both donors and charities/not-for-profits alike. It provides career information, donor information and articles from various fund-raising journals that keep you up-to-date on issues relevant to those in the field. They are at: www.charityvillage.com

PLAN is a British Columbian based charity that provides information and support to families with disabled children especially in the areas of long-term life planning including estate planning, financial investments such as trusts and helping develop and maintain support networks. Boundary Plaza, Suite 260 - 3665 K, BC  V5G 1G4. (604) 439 9566. www.PLAN.ca

Provincial governments have specific legislation on trusts, trustees, etc. Do a search at the following sites to get relevant information.

Albertawww.gov.ab.ca

BCwww.gov.bc.ca

Manitobawww.gov.mb.ca

New Brunswickwww.gov.nb.ca

Newfoundland & Labradorgov.nf.ca

Northwest Territorieswww.gov.nt.ca

Nova Scotiawww.gov.ns.ca

Nunavutwww.gov.nv.ca

Ontariowww.gov.on.ca

PEIwww.gov.pe.ca

Quebecwww.gouv.qc.ca

Saskatchewanwww.gov.sk.ca

Yukongov.yk.ca

The “Special Needs” Planning Group, whose resources have been reprinted in this book, are located at 70 Ivy Crescent, Stouffville, ON  L4A 5A9. (905) 640-8285. www.specialneedsplan.org

Revenue Canada (see Canada Customs and Revenue Agency)

Community Foundations in Canada by Province

Note: Community Foundations do not have consistent policies across Canada. Get specific information from your local foundation to find out how it opens, maintains/manages and closes endowment funds.

Province

Community Foundations

Yukon (1)

The Yellowknife Community Foundation

British Columbia (27)

Abbotsford Foundation

The Alberni Valley Community Foundation

Bulkey Valley Foundation

Campbell River Community Foundation

Central Okanagan Community Foundation

Comox Valley Community Foundation

Coquitlam Foundation

Kamloops Foundation

Kent Harrison Foundation

The Maple Ridge Community Foundation

Mission Foundation

Nanaimo Community Foundation

North Shore Charitable Foundation

Community Foundation of the South Okanagan (formerly Penticton & District Foundation)

Parksville Qualicum Community Foundation

Phoenix Foundation of the Boundary Communities

Prince George Community Foundation

Revelstoke Community Foundation

The Richmond Foundation

Salt Spring Island Foundation

Shuswap Community Foundation

Surrey Foundation

Vancouver Foundation

Vernon & District Foundation

The Victoria Foundation

The West Vancouver Foundation

Community Foundation of Whistler

Alberta (9)

The Calgary Foundation

The Greater Camrose Community Foundation

Drayton Valley Community Foundation

Edmonton Community Foundation

Community Foundation of Greater Grande Prairie

The Lethbridge Community Foundation

Mayerthorpe Area Community Foundation

Medicine Hat Community Foundation

Red Deer & District Community Foundation

Manitoba (28)

Altona Community Foundation Inc.

Beautiful Plains Community Foundation

The Boissenvain & Morton Foundation Inc.

Brandon Area Foundation

Brokenhead River Community Foundation Inc.

Carberry and Area Community Foundation Inc.

Carman Area Foundation Inc.

The Cartwright and Area Foundation Inc.

Dauphin & District Community Foundation Inc.

The Glenboro Area Foundation Inc.

The Interlake Community Foundation

The Killarney Foundation Inc.

Morden Area Foundation

North Norfolk - MacGregor Foundation Inc.

Northern Neighbours Foundation Inc.

Pembina Manitou Area Foundation Inc.

Pilot Mound & District Foundation

Portage & District Foundation Inc.

Selkirk & District Community Foundation

Souris Glenwood Foundation Inc.

The Southwest Manitoba Regional Foundation

Steinbach Community Foundation

Thompson Community Foundation

Tiger Hills Community Foundation

Virden Area Foundation Inc.

Westshore Community Foundation

Winkler Community Foundation

The Winnipeg Foundation

Ontario (24)

Aylmer Area Community Foundation

Brantford Sesquicentennial Community Foundation

Burlington Community Foundation

Cambridge & North Dumfries Community Foundation

The Chatham Kent Community Foundation

The Community Foundation of Durham Region

Guelph Community Foundation

Hamilton Community Foundation

Horonia Communities/Fondation communautaire de l’Huronie

The Community Foundation of Greater Kingston

The Kitchener and Waterloo Community Foundation

London Community Foundation

The Napanee District Charitable Foundation

Community Foundation of Oakville

The Community Foundation of Orillia & Area

Community Foundation of Ottawa

Owen Sound & Area Community Foundation

The Sarnia Community Foundation

The Town of Simcoe Foundation

Sudbury Community Foundation

Thunder Bay Foundation

Toronto Community Foundation

Tri-Town Foundation

The Greater Windsor Community Foundation

Québec (1)

Fondation Communautaire du Grand Québec

New Brunswick (4)

Fredericton Foundation Inc.

Fundy Community Foundation

Community Foundation of Greater Moncton Inc.

The Saint John Foundation

Nova Scotia (1)

The Halifax Foundation

Prince Edward Island (1)

Community Foundation of Prince Edward Island

Newfoundland (1)

Bonne Bay Community Health Foundation


Written Resources

The following references are only a few of the many useful resources that you can find in your local libraries, within your own organization, and in your local bookstores. Look for further books but also journal articles, magazine reports, films, videos and audiocassettes. Also keep in mind how much you can learn from experts in the field, including people within your own organization.

B.C. Civil Liberties Association. (1990). Managing an endowment fund campaign: A handbook for non-profit organizations. Vancouver: B.C. Civil Liberties Association.

Canadian Association on Charitable Gifts. (November 4, 1998). “Sample bequest wordings -- Let me count the ways...” in Canadian FundRaiser as reprinted by Charity Village, Mississauga, Ontario on their Web site: www.charityvillage.com

Canadian FundRaiser. (June 19, 1996). “Strip bonds: An attractive new vehicle for fundraisers” as reprinted by Charity Village, Mississauga, Ontario on their Web site: www.charityvillage.com

Chilton, David. (1989). The wealthy barber: The common sense guide to successful financial planning. Toronto: Stoddart.

Dickson, Mary Louise, Walsh, Rod, & Endicott, Orville. (1999). The wills book: Benefits, wills, trusts and personal decisions involving people with disabilities in Ontario. Toronto: Ontario Association for Community Living.


Foster, Sandra E. (1996). You can’t take it with you: The common-sense guide to estate planning for Canadians. Toronto: John Wiley and Sons. She can be reached by fax at: (416) 642-3980 or at web.idirect.com/~carat

Gray, Douglas & Budd, John. (2000). The Canadian guide to will and estate planning. Toronto: McGraw-Hill Ryerson.

Klees, Janet. (1996). We come bearing gifts. Toronto: PSD Consultants. Klees presents the history of Deohaeko Support Network in Pickering, Ontario. This group of 10 families came together to secure the long-term social, housing and financial needs of their adult children with developmental disabilities. The book includes extensive discussions on the creation and maintenance of support circles.

Kushner, Sherry & Pearce, Ed. (July 2, 1997). “Planned giving and the family cottage” in Canadian FundRaisers reprinted by Charity Village, Mississauga, Ontario on their Web site: www.charityvillage.com

Minton, Frank & Somers, Lorna. (1997). Planned giving for Canadians: A guide to institutions and managing a successful planed giving programme (2nd edition). Waterdown, ON: Somersmith.

Morgan, Peter J. & Nemeth, Gerry. (1996). Family trusts for tax and estate planning. Vancouver, BC: Self-Counsel Press.

Nill, Stephen C. (April 13, 1996). “Planned giving aims to tap release of assets” in Charity Village NewsWeek, Mississauga, ON and available from their Web site at: www.charityvillage.com

Pearce, Dr. Edward. (September 5, 1994). “Let’s take the mystery out of probate,” in Canadian FundRaiser and reprinted with copyright protection by: Charity Village, Mississauga, ON from their Web site at www.charityvillage.com

Royal Trust. (1994). Planned giving: Helping others while saving taxes. Toronto: Royal Trust Corporation of Canada.

Stewart, Wayne. (May, 1994). “Endowment funds and the Community Foundation” in Philanthropist, Vol 12, No 1.

Vale, Norma. (March 1996). “More charities are considering setting up parallel foundations -- for a lot of good reasons” in Front and Centre, Vol. 3, No. 2.: p. 1, 16-17 by Canadian Centre for Philanthropy.


Glossary

The following list includes basic legal and financial definitions. For a complete definition use more extensive, standard legal and financial dictionaries.

adjusted cost base  The cost of a capital property for tax purposes which may be above or below what one paid for it.

administrator  The person appointed by the court to administer an estate when there is (a) no will, (b) no executor named in a will, or (c) named executor unwilling or unable to act.

affidavit  A sworn statement in writing made before a lawyer or notary public.

alternative minimum tax  A set of rules that limit the tax advantage that an individual can have in any given year from certain tax incentives such as RRSP contributions, capital gains and tax-shelter investments.

annuitant  A person who receives a guaranteed income (e.g., from a charitable gift annuity, RIF).

annuity  A sum of money is transferred to an annuity provider (e.g., bank, insurance company) and the provider makes periodic payments (e.g., monthly, quarterly, annually) to someone for a specified term.

assets  Property and income owned by a person or corporation including real estate, other physical properties, cash, corporate shares, promissory note, trademark or copyright.


associate decision-maker  A person who makes decisions on behalf of an adult with disabilities, with some input from the person. Person may also be called an assistant decision-maker or in Quebec, adviser.

beneficiary  Person who receives a benefit from a will, insurance policy or trust fund. In the case of trusts, beneficiaries can benefit from the income of the trust (income interest), the capital (capital interest) or both.

bequest  A gift made in a person’s last will and testament. If making a charitable gift through a will, the person must write out the charity’s full corporate name to prevent legal battles. For example, if making a gift to cancer, is the gift for the local, provincial or national cancer society in Canada or abroad; is the gift for the Cancer Society or for a research organization with cancer in its title or to a hospital specializing in cancer treatment?

capital  The cash or property owned by a person or corporation including substituted property, realized capital gains and accumulated income. Usually distinct from interest earned on the capital that may be paid out to a beneficiary in a trust.

capital cost allowance  The tax relief available on the depreciation or wear and tear over time on capital property such as manufacturing equipment, automobiles, and computers.

capital gain/loss  The difference between a capital property’s fair market value and its adjusted cost base -- essentially what you’ve made, or lost on an investment. For example, a share in a company cost you $10 three years ago and is now worth $15 when you sell it. The capital gain is $5.

capital interest  Those capital assets that are contributed to a trust (e.g., cash, property) which is different than the income interest earned on those assets.

cash surrender value  The amount paid by an insurance company if you cancel a life insurance policy. This is the money set aside within your policy to subsidize future premiums so that the policy’s cost is level over the entire payment period. An over-simplified example is that your first few premiums might actually only be $200 for your age and health when you begin your policy. The actual cost of your last premiums should be $400 given that you are 20 years older and the cost of inflation on the value of your money. By averaging out at $300 per year, the insurance company invests the extra costs of the early premium to subsidize the greater costs at the end of the policy. When you cancel you policy, they give you a portion of that extra money back.

charitable gift annuity  A life annuity issued by a charitable organization with funds donated by an individual (for tax as well as charitable purposes) which are expected to be greater than the annuity paid out regularly to the donor for life. Any capital in the account at death reverts to the charity for use in its charitable works.

charitable remainder trust  A donor transfers ownership of property to a trust and names a charity as the capital beneficiary. While the donor is alive they, or another designated income beneficiary, can use the property and receive any income from it. After death, the charity is the sole beneficiary.

circle  A group of people who are committed individuals who provide direction, encouragement, and support to an individual with disabilities or ongoing advocacy needs. Such circles may be relatively short term (e.g., a home care situation when someone is ill or recovering from debilitating treatments) to long term (e.g., around a person with an ongoing disability). See reference section for resources on creating, maintaining and encouraging such circles.

committee  The legal term in BC, Manitoba, New Brunswick and PEI to describe the legal guardian of an adult with developmental or mental disabilities. See also guardian.

creditor  A person to whom money is due.

deemed disposition  Canada Customs and Revenue Agency (formerly Revenue Canada) rules that deem you to have disposed of all of your assets on your death. Any capital gains are deemed to have occurred and taxed accordingly.

deferred gift  A charitable donation arranged now for payment in the future, often after death.

dementia  Deterioration of a person’s mental capacity from changes in the brain.

discretionary trust fund (See also trust fund)  A trust that allows the trustee to be flexible in how, when and how much payments will be to, or for, the beneficiary, provided payments are made according to the terms of the trust.

disbursement quota  A federal income tax rule requiring registered charities to spend in the present year 80% of the funds raised in the previous year, and for which income tax receipts were issued. This regulation is meant to ensure that most of a charity’s funds are used for charitable purposes, that expenses are kept to a reasonable level and that excessive funds are not accumulated. Exceptions to the rule are made for bequests, gifts from a registered charity, and for donations made by donors who require the charity to hold the gift for at least 10 years (e.g., to be used in an endowment fund).

encroach (on capital)  Paying out to a beneficiary portions of the money or other assets (capital) being held in trust. The trust agreement may allow the trustee to pay capital from the trust for general situations (e.g., ‘for general benefit’) or limited (e.g., ‘for purchasing a home’).

endowment fund  A separate fund of money and assets that must be kept for at least 10 years. The interest from the money and assets may be dispersed (a minimum of 4.5% per year) but the principal cannot be touched. Endowment funds can hold money, stocks, mutual funds and bonds, property, and other physical assets. They are usually created to help fund a specific program or service or to donate to charitable organizations.

estate  All the assets owned by a person at death which are governed by their will. Excluded from your estate are beneficiaries from insurance policies and trusts.

estate freeze  A method of limiting the growth in value of a person’s estate by diverting the growth, usually to the beneficiary. Therefore, parents may freeze their estate as of a certain date and any growth in its value will benefit their beneficiaries, usually their children.

even hand  Trustees are to invest funds within a trust fairly and equitable so that all beneficiaries benefit equally from the decisions. For example, if a trust names one person the capital beneficiary and another person the income beneficiary, then the trustee cannot invest all assets in such a way that generates lots of income (benefits income beneficiary) but little appreciation to the assets themselves (hurts the capital beneficiary). Recurring and operating trust expenses are usually paid from trust income while major, permanent repairs or improvements to property are payable from capital. Depending on the ratio of these expenses, one beneficiary may benefit more than the other, which is considered inappropriate.

executor/executrix  The man/woman or institution named in a will to administer an estate following the terms of the will and the legal requirements set out by provincial laws. In Ontario, the executor is known as the estate trustee and in Quebec the liquidator.

family trust  Established for the sole benefit of family members including infant children and dependent elders.

fiduciary  A relationship whereby one person holding legal title to assets through a trust acts in the best interest of the beneficiaries of that trust.

fair market value  The price something would earn on the open market during a normal time period between a non-related buyer and seller.

gift in kind  A gift of property other than money.

grant of probate  See also probate.

guardian  The person(s) legally responsible for minor children or in Alberta, Saskatchewan, Ontario, Nova Scotia, PEI and Newfoundland, the person legally responsible for an adult with developmental or mental disabilities. In Quebec the term is curator.

hereditary  Something inherited from parents.

incapable/incompetent  Legal terms used to describe people deemed not able to understand the information that is relevant to making a decision and, therefore, not able to appreciate the “reasonable foreseeable consequences of the decision or lack of the decision”. Each province has its own legal requirements for determining capability and competence.

indenture  Also called trust deed. The terms and conditions of a trust either decided when opening a Living Trust or described in the Last Will and Testament of a settlor.

income  The money  (e.g., interest and dividends) generated on an ongoing basis through investments of capital.

income interest  Income (e.g., cash, rent, dividends) earned from the capital within a trust or endowment.

instrument  A written document such as a deed, will, trust, contract, lease or mortgage.

inter vivos trust  See also life trust

intestate  A situation where a person dies without having a valid will. Partial intestacy occurs when a valid will does not deal with all of the estate’s matters.

irrevocable gift or transfer  A gift or transfer to a trust fund that cannot be taken back by the person making the gift or transfer.

issue  All descendants from a common ancestor which includes children, grandchildren, great grandchildren, etc.

joint tenants  A form of joint ownership where the death of one owner automatically transfers ownership to the other joint tenant(s) deemed to occur at the time of death.

Last Will and Testament  See also will.

life interest  Also called life tenant receives the right to use a property for a specific period of time (often their lifetime) and upon their death the property title is given to another person. For example, a surviving spouse may have life interest in the family home until her death when it will be transferred to their child.

life tenant  See also life interest.

life trust  Also called inter vivos trust is a trust created while the settlor is still alive.

mental incapacity See also incapable/incompetent.

Non-discretionary trusts  Established by settlors with clearly defined responsibilities outlined for the trustees including when and how beneficiaries can receive benefits, whether benefits include only income earned or also principle assets, and any specific limitations or requirements as defined by the settlor. For example, the parents may decide that only income earned in the trust can be given to the beneficiary except for the purchase of a home when principle may also be given out.

notarize  A notary public authenticates or attests to the truth of a document (i.e., attests that a document was signed by a particular person).

notary public  A public officer (can be a lawyer) who certifies documents, takes affidavits and administers oaths.

planned giving  A charitable gift made in such a way that you maximize your tax and estate planning benefits. Once made, most of these donations cannot be taken back.

per stirpes  The method of dividing assets of an estate if a beneficiary has died. For example, a grandparent may leave 10% of their estate to each child but one child has died, therefore, their children, if any, would divide that 10% equally among themselves.

personal property  All property owned by a person except for real estate and buildings.

preferred beneficiary election  Allows trust beneficiaries who receive tax credits for mental or physical disabilities to be taxed at their own income tax level (often little or no taxes due) and they can keep their trust income within the trust to accumulate up to their 21st birthday. Other people must have their trust income taxed at the tax bracket of the trust.

power of attorney  A written document that allows a person to give someone they choose authority to act on their behalf in certain circumstances. Powers of attorney can be general or specific for such things as handling someone’s financial matters (i.e., Power of Attorney for Finances) or for health care decisions (i.e., Power of Attorney for Personal Care). The person you designate can speak for you when you are unable due to illness or disability but you can revoke their power at any time verbally or in writing. The power of attorney stops immediately upon your death when your executor takes over decision making for your estate.

precatory trust  Not a true trust but rather a settlor transferring ownership to a trustee who has absolute title to the property and free to dispose of it as they wish including for their own benefit. The settlor is relying on the trustworthiness of the recipient to carry out their wishes.

probate  Formal proof before the proper officer or court that a person’s will is their true last will and confirms the executor(s) named in the will. The executor receives a Grant of Probate, also called Grant of Letters Probate and Letters Probate, known in Ontario as Certificate of Appointment of Estate Trustee with a Will. In Quebec, probate is only applicable for a will not in notarial form.

proceeds of disposition  The actual money earned from the sale of an asset (less expenses) or the deemed value when there is no actual sale.

property  Tangible assets such as land, home, and collectibles (e.g., stamps, coins, antiques, art).

public trustee  The provincial government official whose office supervises substitute decision-makers and guardians. In Quebec, the equivalent position is the curator public while guardianship appointments are known as curatorships or tutorships.

RRIF (Registered Retirement Income Fund)  A formal plan, registered with Canada Customs and Revenue Agency, which is a tax shelter for funds transferred from an RRSP at maturity. The retired person draws regular income from the Fund and pays taxes only the amount withdrawn.

RRSP (Registered Retirement Savings Plan)  A formal plan, registered with Canada Customs and Revenue Agency, which is a tax shelter for funds invested by the plan holder to accumulate savings and earnings for retirement, tax free. When the taxpayer reaches the age limit for RRSPs, the funds may be transferred into a RRIF or used to purchase a life or fixed term annuity to maintain the tax-sheltered status of the funds. If funds are removed for other purposes, they are taxed as income.

real property  Land and buildings, also known as real estate or realty.

remainder interest  That capital interest left over after the life interest beneficiary has died. This remainder interest is bequeathed in the trust to someone else. For example, a mother leaves the family home to her daughter (remainder man) in her will but the daughter can only claim the home after her father (life interest beneficiary or life tenant) dies. The father can live in the home for as long as he wishes or until his death.

remainder man  The person who receives the remainder interest in a trust.

reserve fund  An account that an organization puts its excess revenues in to cover future expenses (large or small). Both the principal and the income from the account can be spent in part or in whole as decided by the Board of Directors.

residue  That part of an estate left over after all specific bequests are made and all outstanding debts are paid.

senility  Loss of mental ability and memory (especially of recent events). Age related deterioration of brain cells.

settlement  The transfer of property to a trust.

settlor(s)  A person or group of people who transfer their ownership of some or all of their assets into a trust for the benefit of one or more people. For example, a parent or extended family that contributes to a trust for the benefit of an adult child with a developmental disability.

spendthrift trust  Established to manage and administer larger assets for the benefit of a beneficiary who was deemed by the creator(s) of the trust as unable to do so for themselves.

spousal trust  Established from a will for the sole benefit of the surviving spouse.

stirpes  The person from whom a family or branch of a family is descended.


substitute decision-maker  A person who makes decisions for an adult who is mentally incompetent to make their own decisions. The person can be limited to only financial decisions or personal care (health and long-term). See also associate decision-maker.

support circles  (See also circle).

testamentary trust  Created through a Last Will and Testament after a settlor’s death. Testamentary trusts may be used to minimize income taxes by splitting income between the trust and the beneficiary. Trusts are taxed as if they were an individual for income tax purposes. Any income earned by such a trust is taxed by the same graduated tax scale as personal incomes.

three certainties  To be a legal trust you must have certainty of intent (what it is intended to do), certainty of subject matter (income and capital interests clearly identified), certainty of objects (the beneficiaries clearly identified).

trust  A trust is a method of contributing assets from one person to another with a person in the middle to ensure the money is well spent. A settlor transfers ownership and control of their contributed assets to a middle person, the trustee to be held in trust for the benefit of a third person or group of people, the beneficiaries. The trustee must legally manage the trust in the best interests of the beneficiaries under whatever written instructions given to them by the settlor. This relationship between trustee and beneficiaries is called fiduciary, meaning the trustee holds legal title to the assets but acts in the best interests of the beneficiaries. More than one person can contribute to the trust and there can be more than one trustee. A testamentary trust is created through a person’s last will and testament and takes effect upon the person’s death. An inter vivos trust or living trust is a trust set up during a person’s lifetime. See also precartory trust and voluntary trust.

trust deed  See also indenture.

trustee(s)  One or more people, or a trust company, entrusted with the legal ownership of assets given into a trust by settlors for the benefit of one or more other people. They administer the trust following the instructions provided by the settlor (in trust deed or indenture), the courts or provincial statutes. For example, parents may choose a younger friend or colleague to act as trustee for their trust with the trust funds used to provide life-time funds to their disabled child.

voluntary trust  An irrevocable trust established with the settlor as the main beneficiary. By transferring ownership of assets to the trust, the settlor protects the property and ensures some income. For example, a person that has difficulty dealing with money, may transfer ownership in their investments or in a rental property to the trust so they do not gamble the assets away.

will  A legal document prepared by a person (and usually witnessed) and properly done in accordance with strict provincial laws which speaks for the person upon their death and states what they want done with their property, assets and liabilities as well as reference to guardianship issues for minor children. A will can include clauses directing the executor to create a trust fund.


Index (page numbers from original text)

Note: Check the glossary for definition of terms.

Advisors (See professionals)

Aids Committee of Toronto, 203

assets and liabilities assessment, 37

assets outside probate, 36

Associations for Community Living, 13, 59


Canada Customs and Revenue Agency, 66, 86, 114, 225

community foundations, 67, 72, 73, 78-81, 227

types of funds, 79


Deb Thivierge, xiii, 91-92

Deohaeko Support Network, xiii, 10, 62, 72, 81, 91

dependent loved ones, ix

disability, ix


Ed Broadbent, 68

endowment fund

80% disbursement quota, 67, 83, 85

4.5% disbursement rule, 75, 83, 85

10-year rule, 69, 75, 86

agreement sample, 208

closing the fund, 87

comparing funds, 134

definition, viii, x, 65

donor agreement sample, 86, 208

establishing a fund (pros and cons), 68-70

introduction, 2

maintaining a fund, 84

needs assessment, 71

non-financial considerations, 89

planning, 73, 188

policy samples, 194

separate foundation (pros and cons), 81- 82, 84

variance clause, 80, 86


family, ix

agreement sample, 211

cottage, 28, 128

groups, vii

responsibilities, xvii

stories, 11, 57

family agreement, 211

fund raising, 96

advisory committee, 101

asking people to give, 129

pot-luck dinner meetings, 100

planned giving, 99, 101

bequests, 109

types, 111

Canada Pension Plan gifts, 117

cash donations, 102, 109

charitable gift annuities, 114

charitable remainder trusts, 112

definition, 101

in honour/in memory, 103

insurance, 108

pledge donations, 105

stocks, bonds, mutual funds, 105

strip bonds, 107

special projects, 99, 121

artist's painting, 121

borrowing money for fund, 123

bricks and mortar, 121

potato field, 127

product sales, 125

video tape sales, 126

taxes, 104-106, 109-112, 114, 116, 118, 120

USA and foreign taxes, 120


interest calculations, 8


jargon, ix, 6

Janet Klees, xvi, 12, 41, 48, 62, 92

last will and testament, 35, 59, 110

process, 140

sample, 148

specific wording for donors, 136

life planning, 41-42, 48, 164


named funds, 7, 68

Naomi Terry, 48

life plan and vision, 48

life plan review, 54

not-for-profit/charitable organizations, ix

difference between, 66-67

responsibilities, xviii

stories, 62-64, 91-94

types of charities, 67


organization lists, 225


Panel on Accountability and Governance, 68

powers of attorney, 36

health care, 36

financial, 36

professionals, ix, xvii, 16, 40, 224

choosing, 3

questions to ask, 5-6


questions to ask

advisors, 5

trustees, 29-30

trusts for you, 34

create an endowment fund, 89-90

reserve funds, 65

Revenue Canada (See Canada Customs and Revenue Agency)

Rougemount Co-operative, 62

rule of 72, 97


support circles, 12-13, 50, 57, 62

Statute of Elizabeth, 67


trust fund

21-year rule, 25

accumulation rule, 26

beneficiary, 17-18

one or two, 25

capital gains, 25

capital interest, 24

comparing trusts, 134

deed, 23

definition, x, 15

first deemed disposition date, 25

income producing property, 28

introduction, 2

life interest, 23

life tenant, 23

indenture, 23

remainder interest, 24

remainder man, 24

rules

certainty of intent, 21

certainty of subject matter, 21

certainty of objects, 22

settlor, 16

taxation, 27-28

trust fees, 31-34

trustee, x, 16, 29

types, 17

absolute discretionary trust, 20, 185

discretionary trust, 20, 24, 59, 185

express trusts, 17

family trust, 19

Henson trust, 20

insurance trust, 18, 186

inter vivos trust, 18- 20, 22-23, 26-27, 31, 36

irrevocable trust, 22

multiple trust, 24

nondiscretionary trust, 24

precatory trust, 21

preferred beneficiary election, 18

revocable trust, 22

spendthrift trust, 19

spousal trust, 19, 21

testamentory trust, 18-20, 22-23, 26-27, 31-32


value of funds, 9

vision statement (personal), 42

what you need to know first, vii, xvii


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