Savings
and Giving: Gifts of Registered Plans (RRSPs and RRIFs)
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.
What
is a registered retirement plan?
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untouched and only the minimum amount is withdrawn each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.
How
does this work?
- At
the time of your death, the proceeds of the plan
are donated to the Alzheimer Society.
- The
executor of your estate will include the full balance
of the registered plan in your final tax return.
- Your
executor will
receive a charitable contributions receipt from
the Alzheimer Society for the same amount.
How
will this gift benefit the Alzheimer Society?
Your
gift will:
- help
to provide necessary funding for the special programs
and services so vital for those who are touched by
Alzheimer's disease; and
- ensure
that, through research, our vision of creating a world
without Alzheimer's disease will one day become a reality.
Your
future gift can either be:
- unrestricted
to support the overall work of the Society; or
- designated
to support a project or initiative that is particularly
important to you, such as research, caregiver support,
education or awareness.
How
will this gift benefit you?
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, 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.
How
do I donate a registered retirement plan?
- You
need to designate the Alzheimer Society as the beneficiary
of the registered plan's assets.
- You
can do this with an officer of the financial
institution or insurance agency that is administering
the plan.
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.
For
more information
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 plangiving@alzheimer.ca for
more information, or for the correct legal name of your
local, provincial or the national Alzheimer Society.
The Alzheimer Society 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.
Adapted
with permission of the Alzheimer Society Of Saskatchewan.
[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.]
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