Gifts of RRSP's or RRIF's
Unlike other deferred donations, RRSP/RRIF funds require no legal documents or complicated trust arrangements.
Since February 2000, the Canadian government has implemented a simple and effective way for individuals to donate the proceeds of their Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs) to a designated charity like Canadian Warplane Heritage. The gift is easy to make - you simply change the beneficiary information on the plan document and advise the institution holding your retirement account of the change.
You can support multiple beneficiaries, meaning a combination of family members, other significant people and charities such as Canadian Warplane Heritage. Unfortunately, your retirement funds are amongst the most heavily taxed assets that you own. However, when a charity is designated a direct beneficiary of registered plans, these taxes are offset by the tax receipt issued by the charity for the full amount being transferred.
If you are married, your spouse will probably be designated as the beneficiary of your RRSP or RRIF. Once you are confident that your family is well provided for, you may wish to consider what will happen to the remaining portion of your plan when your spouse dies. If you choose, you can make Canadian Warplane Heritage a contingent beneficiary of your plan, the proceeds of which will only flow to Canadian Warplane Heritage following the death of your spouse.
This deferred donation is one of the most advantageous because when planned assets are directly designated, they are not included in the estate and are not subject to probate fees and your estate (or your spouse's estate) will receive a tax credit.
Upon your death or the death of your spouse, 100% of the assets in your RRSP or RRIF are taxed. A direct donation of RRSP/RRIF funds is an effective way to avoid this tax liability and to preserve the value of your funds for a charitable contribution.
For more information, contact Pam Rickards, Vice President - Operations at 905-679-4183 Ext. 230 or firstname.lastname@example.org.