Gifts of RRSP/RRIF

Securing Your Retirement Legacy:
Strategic Planning with Link Charity

In the landscape of Canadian financial planning, earmarking funds for your retirement has become a cornerstone. However, a comprehensive strategy must extend beyond the accumulation phase to address the fate of your Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) upon your passing.

Upon your demise, if a surviving spouse is named as the beneficiary, the registered savings seamlessly transition to their ownership without incurring tax liabilities. Conversely, in the absence of a surviving spouse or disabled child as the designated beneficiary, these accounts are treated as disposed of, with 100% of the remaining balance added to your income in the year of your death. Given the potential tax implications, especially if other income is earned concurrently, this could lead to taxation at the highest marginal rate.

Considering the advantageous tax credits available for charitable gifts of up to 100% of one's income in the year of death, and retroactively for one year, a strategic move is to directly gift assets, such as those held in your RRSP or RRIF, to charities through Link Charity’s beneficiary designation.

Benefits To You Include:

• Tax Burden Alleviation: Effectively reduce or potentially eliminate the tax burden at estate time.
• Probate Exemption: Charitable gifts bypass the probate process.
• Revocable Beneficiary Designation: Enjoy full control; change beneficiaries, distribution amounts, or even alter your chosen charities at any time.
• Efficient Fund Distribution: Charities receive funds promptly, ensuring no delay in the impact of your generosity.

Ensure a seamless transition of your retirement assets while leaving a lasting legacy by incorporating Link Charity’s beneficiary designation into your estate planning. It's a prudent and tax-efficient strategy that aligns your retirement goals with impactful charitable giving.