Many Canadians have savings in Registered Retirement Savings Plans, however RRSPs and RRIFs often create large tax liabilities in the year of death since the entire amount of the plan is included in your income in one year. Donating all or a percentage of your RRSP or RRIF to Crossroads International is an effective way to reduce the taxes payable by your estate.
How to start
To name Crossroads International as the beneficiary of your registered retirement savings plan or retirement income fund contact the financial institution managing your retirement plan and sign a “beneficiary form” naming Crossroads International as the beneficiary of the plan.
Crossroads International strongly recommends that you seek professional advice to ensure your financial goals are considered, your tax situation reviewed, and your planned gift tailored to your circumstances.
Benefits of Gifts of Registered Assets
- Tax Advantages: RRSPs and RRIFs become fully taxable as income in the year of death, usually at the highest marginal tax rate, unless the funds can be rolled over to a surviving spouse or a dependent child. If you donate your RRSP or RRIF, your estate may claim gifts in the years of your death equal to 100 percent of your net income in that year and the preceding year.
- Simple: This type of gift is easy to arrange. Obtain a change of beneficiary form from the financial institution, name Crossroads International as beneficiary of all or a percentage of the account and hand in to the financial institution so they can update their records.
- Flexible: The designation is revocable and can be changed.
- Cost Effective: There are no extra out-of-pocket costs.
- Eliminates Probate, Legal & Executor Fees: Your gift will not be subject to probate costs or delays in settlement. The full proceeds are payable to Crossroads International upon your death.
- Peace of Mind: You can plan, arrange and announce the gift yourself and you will know that it will occur just as planned.
- Control: You retain the use of the investment for the duration of your lifetime.
- Privacy: Your gift is not a matter of public record allowing you to remain anonymous. Unlike a Will, the gift cannot be contested.
- Recognition: Your gift can be honoured during your lifetime.
- Satisfaction: Your gift is made for personal reasons; you can create a lasting memorial for you, your family or anyone you may wish to honour. Of course, you will also continue to be part of solutions that fundamentally improve people’s lives by reducing poverty and advancing women’s and girls’ rights around the world.
Contact our Resource Development Manager, Palash Bagchi, for further information on how to prepare your gift of registered assets to Crossroads.