Registered retirement savings plans (RRSPs), registered retirement income funds (RRIFs), registered annuities, and locked-in plans differ from non-registered investments as a source of charitable donations.

You can name the T&DH Foundation as the beneficiary of RRSP or RRIF. The donation qualifies as a charitable donation and thus allows the estate to receive a charitable donation tax receipt.  Since the registered plan falls outside of the estate, it is not subject to probate. (Note this does not apply to registered pension plans or other registered plans.)

If you are converting a RRSP to a RRIF (as late as 69) you can withdraw a portion and donate it to T&DH Foundation. The amount withdrawn is taxable which will be offset by the donation receipt. This allows you to witness the benefits of the gift during your lifetime.

If you directly designate the T&DH Foundation on your plan documents, your plan trustee will be able to pay out 100% of the value of plan assets to T&DH Foundation.

Advantages:

• The donor retains complete control over the assets until death.
• The donor can revoke their decision by designating a new beneficiary.

Drawbacks:

• The donor will not witness the benefits that their gift will provide.

Example

If your RRIF had a $100,000 balance after you or your spouses death, you would owe approximately $46,000 in tax. A direct designation gift will produce a tax receipt that fully offsets the $46,000 tax bill and preserve the $100,000 for T&DH Foundation. Although the gift is given outside of your estate, the tax receipt can be claimed in the final two tax returns.

Direct designation gifts of RRSP,/RRIF(s) assets also address personal estate planning issues such as probate fees and privacy.