RRSPs / RRIFs can be your most heavily taxed assets on transfer to the next generation, depending on your circumstances. If the beneficiary is other than a surviving spouse or financially dependent child – these assets will be taxed as normal income in the year of death. In that case, a significant percentage your retirement funds could be consumed in taxes.
Donating your RRSP or RRIF to Save the Children is a smart and effective way to offset estate taxes and probate fees.
- You can make a significant gift in the future increasing your charitable impact, helping us to advance our mission
- Eliminates Probate Fees – your retirement funds are not part of your estate, therefore are not subject to probate fees
- You receive a double tax benefit by eliminating the transfer tax and the donation receipt can help offset the tax burden on your estate
- Satisfaction of providing a future gift while retaining ownership and use of funds during your lifetime
HOW DO I DONATE RETIREMENT FUNDS?
Simple and easy to do. Obtain a change of beneficiary form from your plan administrator and name Save the Children as a beneficiary, of all or a percentage of your RRSP or RRIF account.
There are two ways to donate the proceeds of an RRSP or RRIF:
- You can name Save the Children as the direct beneficiary of your RRSP or RRIF. Upon death the proceeds will be paid directly to Save the Children without going through probate. The donation qualifies for the donation tax credit for up to 100% of income in the year of death.
- You can name your estate as the beneficiary of your RRSP or RRIF and leave instructions in your Will to donate all or part of your RRSP or RRIF to Save the Children. You may specify a percentage of the RRSP or RRIF or a specific dollar amount to be donated. The donation qualifies for the charitable Will bequest donation tax credit for up to 100% of income in the year of death and in the year preceding.
Note: The trustee of your RRSP or RRIF will withhold taxes and probate will apply when choosing this option.
If you have any questions, please contact our Planned Giving Officer Christa Kelly at: 1-800-668-5036 ext. 265, or email firstname.lastname@example.org
Please Seek Expert Advice: When considering a planned gift, it is important to assess your overall financial circumstances. Therefore, it is important to consult your financial advisor when making a planned gift so you can choose a strategy which best provides you or your estate with the largest tax savings while fulfilling your charitable goals.