RRSPs & RRIFs
Donating Registered Assets such as a Registered Retirement Savings Plan (RRSP) or a Registered Retirement Income Fund (RRIF) is an effective way to reduce the taxes payable from your estate.
RRSPs and RRIFs often create large tax liabilities for a taxpayer in the year of death, since the entire amount of the plan is included in the taxpayer's income in one year. If your RRSP or RRIF has the Ontario SPCA as the direct beneficiary, your estate will receive a donation receipt for the entire value of the plan. The credit arising from this donation will offset the tax liability. As a result, the entire value inside an RRSP or RRIF can be given to a registered charity in the year of your death with no tax implications. A gift of a RRSP or RRIF may enable you to fulfill dual goals of supporting the Ontario SPCA while reducing the amount of taxes that your estate would otherwise have to pay.
Benefits of a Gift of Registered Assets
- Tax Advantages
- Cost Effective
- Eliminates Probate, Legal & Executor Fees
- Peace of Mind
How does it work?
There are two ways to donate the proceeds of an RRSP or RRIF:
As donor you can name the Ontario SPCA as the direct beneficiary of your RRSP or RRIF. Upon death, the proceeds will be paid directly to the Ontario SPCA without going through probate.
As a donor 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 the Ontario SPCA. You can 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 your death and in the year preceding.