Does an Executor's discretion in choosing a Charity prevent claiming of a donation tax credit?


Q. I am a Trustee of a Will which allows me, the Trustee, the discretion of how to disburse a certain amount of money, by giving to any Charity of my choosing. My question is whether a tax receipt can be issued for the amount I decide to donate.

Short Answer: Yes, a tax receipt can be issued.

Comprehensive Answer: Even where the Trustee excercises his or her discretion to donate an asset or funds to a specific charity, a donation reciept can be issued for the fair market value (FMV) of the donation and a donation tax credit can be claimed on the Trust Return filed by the Estate. 

Where the terms of the Will provide that a specific amount of the individuals Estate is to be gifted to a charity, even if a particular Charity was not specified, a donation tax credit can still be claimed on the deceased taxpayer's final return. 


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