Diocese of Saskatoon

What is a contingent bequest?

A contingent bequest is often made by a childless donor who wishes to leave the bulk of their estate to their favorite charity, but there is a partner or sibling who needs to be provided for if they survive the donor.  The will states that the bequest will be made in full only if the partner or sibling predeceases the donor.  However, a testamentary charitable remainder trust may also be set up in the will.  Under this arrangement, the bequest would pass to a trustee who would invest the money and pay the net income to the partner or sibling for life.  At the death of the partner or sibling, the trust principal would pass to the charity.  A donation receipt for the “present value” of the future gift provides a tax credit on the donor’s final tax return.