Gift of RRSPs and RRIFs

Registered Retired Savings Plans (RRSP) and Registered Retirement Income Funds (RRIF) are important tools when planning for your secure future.

We encourage you to give at the time you feel most comfortable. Your gifts to the Legion are always welcome and greatly appreciated, but there are different benefits to your donation depending on when and how you give.

Benefits of Giving Now

• The charitable tax credit offsets the tax on the withdrawal.
  A significant charitable gift can be made while reducing the tax burden on the withdrawal through your charitable tax receipt for the gift amount.
• Giving RRSPs/RRIFs in combination with a gift of stock:
  This is an appropriate planning vehicle for individuals who have other assets (e.g. stocks, GICs, bonds, etc).
  
  • The donor pays no tax on the capital gain on the stock.
  • The donor receives a charitable tax credit for the full value of the stock gift.
  • The tax credit offsets the tax on the RRSP/RRIF withdrawal, giving the donor the full money withdrawn.
• Probate and executor N/A.

Benefits of Giving Later

• The charitable tax credit helps offset the burden on your Estate.
  The tax burden can be considerable for registered funds such as RRSPs and RRIFs. When you die, it is as if you cashed in your asset all at once and it is added to your taxable income. Your Estate could then be taxed at the highest income rate.
• You can continue to access and use your asset for the rest of your life.
  The eligible gift receipt will be the value of the asset at your time of death.
• Giving RRSPs/RRIFs in combination with a gift of stock:
  This is an appropriate planning vehicle for any individual with RRSP/RRIF assets.
  • The donor pays no tax on the capital gain on the stock.
  • The donor receives a charitable tax credit for the full value of the stock gift.
  • The tax credit offsets the tax on the RRSP/RRIF withdrawal, leaving the donor with money realized from the withdrawal.
• No probate fees because it does not go through your Estate.
  You can name your beneficiaries directly on your RRSP/RRIF. (Can be left to multiple beneficiaries.)
• No executor fees.
• No Revenue Canada withholding tax on death.