EP9. If a will allows trustees to decide on the way property is disposed, either to a charity or to another organization, can a donation receipt be issued for the property that the trustees donate to a charity?

EP9. If a will allows trustees to decide on the way property is disposed, either to a charity or to another organization, can a donation receipt be issued for the property that the trustees donate to a charity?

Yes. Where the trustees exercise their discretion to donate property to a charity, a receipt can be issued for the fair market value of the property and a donation tax credit may be claimed on the trust return filed by the estate.

A donation tax credit can be claimed on the deceased taxpayer’s final return where the terms of the will provide that a donation of a specific property, a specific amount, or a specific percentage or part of the residue of the individual’s estate is to be gifted to a charity.

In a situation where the individual’s will directs his or her trustee to make a donation to charity without identifying a particular charity, this, in itself, does not stop the donation from qualifying as a gift by will.

(Reprinted with permission from Info Sheet #12 Enduring Property by Charities Files)