You can now make charitable gifts by naming a charity as a beneficiary of an RRSP or RRIF -- without having to pass these assets through an estate.
A registered retirement plan is a tax deferred savings plan. You receive a tax benefit when you invest money in the plan and any interest that is earned is tax free. Only when you cash in the investment, usually during your retirement when your income is less, are your investment and any interest treated as income and subject to tax.
Often the money that has accumulated in an RRSP or RRIF remains untouched and only the minimum amount is withdrawn each year in retirement. As a result, at the time of your death, your estate can be subject to a large tax bill from the untouched income and interest remaining in the RRSP or RRIF.
The gifting of a registered plan can be an attractive option for making a future gift to the Alzheimer Society of Toronto.
Your gift will:
Your future gift can either be:
The funds of a registered plan are available to you during your lifetime to provide income during retirement. At the time of your death, the total proceeds of the registered plan are taxable. By gifting the total proceeds of the registered plan to the Alzheimer Society of Toronto, a charitable contributions receipt is issued and is available to be applied against 100 per cent of your net income on your final tax return.
If the receipt exceeds the taxable income of your estate, the balance can be applied against up to 100 per cent of your taxable income of the year preceding your death.
If you are thinking about making a gift of a registered retirement plan, we recommend that you discuss the gift with your lawyer, accountant or other financial advisor, and family members.
If you'd like more information about how to take full advantage of gifts of RRSPs, contact your insurance agent, accountant or financial advisor. We'd also be pleased to help you with any questions you may have about your gift planning options. Contact us at email@example.com.
The Alzheimer Society of Toronto understands that donors consider estate and gift planning to be a strictly confidential matter. Please be assured your enquiry will be handled in a manner that respects your privacy and maintains confidentiality. See our Privacy page for more information.
[Note: Information on this page is not intended as specific financial planning or legal advice. You should always consult your legal advisors, financial planners and family members when considering a planned gift.]
Information adapted from the Alzheimer Society of Canada
20 Eglinton Avenue West Suite 1600 | Toronto, Ontario M4R 1K8 | 416-322-6560
Charitable Registration# 10670 5262 RR0001