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