PLAN A GIFT

GIFTS OF REGISTERED ASSETS

You can name Chalice as the beneficiary of your RRSP, RRIF, or Tax-Free Savings Account (TFSA). By doing so, you still retain full use of the registered assets in your lifetime, and the gift can be revoked at any time if your financial situation changes.

Your estate may claim gifts in the year of death equal to 100 percent of your income in that year and the preceding year. RRSPs/RRIFs become fully taxable as income in the year of death, usually at the highest marginal tax rate, unless the remaining funds in the account can be rolled over to a surviving spouse or dependent child. By naming a registered charity as the direct beneficiary of an RRSP or RRIF, the estate will receive a donation receipt for the entire value of the plan and the credit arising from the gift will offset the tax liability. As a result, the entire value inside an RRSP or RRIF can be given to a registered charity in the year of death with no tax implication, and the positive impact the gift has on children, and aged, and their families, is far-reaching.

Naming your favorite charity as the beneficiary of your TFSA can also have significant tax savings. Not only will the charity avoid capital gains tax on the growth of your investments before your death, but if you designate them as beneficiaries, the funds bypass the Will, meaning the gift will not be subject to probate tax. And of course, your estate will receive a tax receipt for the full amount of the gift, which can be applied to your final income tax return.
 
Talk to your financial advisor to determine the charitable gift that is best for you. To request a copy of your free Will Planning Kit, or for more information on bequests or another legacy gift please call: 1.855.444.5432 or email info@chaliceus.org.