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You can make charitable gifts by naming the ALS Society of Ontario 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Often the money that has accumulated in an RRSP or RRIF remains untouched and only the minimum amount is withdrawn each year in retirement.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 ALS Society of Ontario.
How does this work?
- At the time of your death, the proceeds of the plan are donated to the ALS Society of Ontario.
- 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 ALS Society of Ontario for the same amount.
How will this gift benefit the ALS Society of Ontario?
Your gift will:
- help to provide necessary funding for the special programs and services so vital for those who are touched by ALS; and
- ensure that those living with ALS have access to our vital Equipment Program.
Your future gift can either be:
unrestricted to support the overall work of the Society; or
designated to support our Equipment Program or other initiatives that are particularly important to you, such as support groups, 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 ALS 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 ALS Society of Ontario 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.
If you'd like more information about how to take full advantage of gifts of RRSPs or RRIFs, contact your insurance agent, accountant or financial advisor.
[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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