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). However, if the Lady Minto Hospital Foundation is made the direct or named beneficiary of the RRSP or RRIF then the donation tax credit will dramatically reduce or eliminate the tax liability.
Where the donor names the foundation as the direct beneficiary of a RRSP or RRIF, the donor’s 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. All you need to do is visit your financial advisor or financial institution and ask them to change the beneficiary designation to the Lady Minto Hospital Foundation.
If you are interested in learning more about the benefits of making these types of gifts, please speak with your advisor or call 250-538-4845. You may also send an e-mail to LadyMinto.Foundation@viha.ca.