Many Canadians are shocked to learn that the assets held in a Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) become fully taxable income to one’s estate in one’s year of death (unless a beneficiary designation allows the plan to be rolled over to a spouse or dependent child).But there’s another option. By making St. Paul’s Hospital Foundation of Vancouver the direct or named beneficiary of your RRSP or RRIF, you can get a donation tax credit that will dramatically reduce or eliminate your tax liability.
Benefits of making a gift of RRSPs or RRIFs
If you name St. Paul’s Hospital Foundation of Vancouver (our legal name) as the direct beneficiary of a RRSP or RRIF, your estate is entitled to a donation receipt for the amount paid out on death. As this asset passes directly to the foundation, probate taxes can be avoided and the risk of creditor claims can be minimized.
How to make a gift of RRSPs or RRIFs
To donate RRSPs or RRIFs, you simply need to visit your financial advisor or financial institution and ask them to change the beneficiary designation to St. Paul’s Hospital Foundation of Vancouver.
For more information
If you are interested in learning more about making a gift of a RRSP or RRIF, please consult your financial advisor or contact us.