Name TCS a direct beneficiary of Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs).
Benefits of registered funds:
- Creates a donation tax receipt to offset taxes due in the year of death, when the remaining funds in most RRSPs/RRIFs become fully taxable as income.
- Set-up is simple and usually involves a form obtained from your financial advisor.
- Gifts can be kept private, as they are not part of your will.
- Balance of your registered fund is not included in probate.
How to arrange a gift of RRSPs and RIFFs:
Fill out the beneficiary designation clause of your RRSPs and RRIFs using the legal name “The Trinity College School Foundation.” Our charitable registration number is 831549746RR0001.
Example #1: Name TCS as a beneficiary of your RRSP/RRIF
John fills out the beneficiary designation with his financial advisor and donates $100,000 of a total balance of $150,000 to TCS when he passes, thus earning his estate a $46,000 tax credit.
|RRIF with donation||RRIF without donation|
|Balance of RRIF||$150,000||$150,000|
|Taxes as income on death||$45,000||$45,000|
|Donation tax credit||$46,000||$0|
|Taxes owed by the estate||($1,000) – can be used to offset any other taxes owed by the estate.||$45,000|
Use RRIF assets to make an immediate and future impact:
If you don’t need the required annual withdrawal from your RRIF, you may contribute the maximum allowable amount that is dictated by your age.
Example #2: Donate annual withdrawal from RRIF
Andrew is 78 years of age and has a variety of retirement income sources that includes CPP, OAS, private pension, rental and non-registered income. The minimum withdrawal amount for age 78 is 8.3%. Andrew has an RRIF balance of $500,000 and does not need the income. Overall, he is comfortable living on an annual income of $60,000 and welcomes the $6,590 tax credit.
|RRIF withdrawal||Donating the annual required RRIF withdrawal|
|Balance of RRIF||$500,000||$500,000|
|Required withdrawal @ 8.3% (annual) at age 78||$41,500||$41,500|
|Taxes payable on RRIF withdrawal (30%)||$12,500||$12,500|
|Donation tax credit||$0||$19,090|
|Total taxes payable||$12,500||($6,590) credit that can be used to offset taxes payable from other income sources|