What is a charitable remainder trust and how does it work for Ontario estate planning?

A charitable remainder trust is an arrangement where you transfer property, often investments or real estate, into a trust during your lifetime, keep the right to receive income from it for as long as you live or for a set period, and then have the remaining trust property pass to one or more charities once that period ends. It lets you support a cause you care about while still drawing income from the property in the meantime, rather than giving it all away outright now.

Because the charity's interest is only in what's left after your income interest ends, this is different from a straightforward will bequest, which simply transfers property outright at death. Setting one up generally involves working with both a lawyer and the receiving charity, since many larger charities have their own planned-giving programs to help structure this, and the trust terms need to be drafted carefully to reflect your intentions and the charity's requirements.

If lifetime income plus an eventual charitable gift both matter to you, this is worth discussing with a lawyer alongside your broader will and estate plan, since it works alongside, not instead of, your other estate planning documents.