You can now make charitable gifts by naming a charity as a beneficiary of an RRSP or RRIF -- without having to pass these assets through an estate.

What is a registered retirement plan?

A registered retirement plan is a tax deferred savings plan. You receive a tax benefit when you invest money in the plan and any interest that is earned is tax free. Only when you cash in the investment, usually during your retirement when your income is less, are your investment and any interest treated as income and subject to tax.

Often the money that has accumulated in an RRSP or RRIF remains untouched and only the minimum amount is withdrawn each year in retirement. As a result, at the time of your death, your estate can be subject to a large tax bill from the untouched income and interest remaining in the RRSP or RRIF.
The gifting of a registered plan can be an attractive option for making a future gift to the Alzheimer Society of Toronto.

How does this work?

• At the time of your death, the proceeds of the plan are donated to the Alzheimer Society of Toronto.
• The executor of your estate will include the full balance of the registered plan in your final tax return.
• Your executor will receive a charitable contributions receipt from the Alzheimer Society of Toronto for the same amount.

How will this gift benefit the Alzheimer Society of Toronto?

Your gift will:

• help to provide necessary funding for the special programs and services so vital for those who are touched by Alzheimer's disease; and
• ensure that, through research, our vision of creating a world without Alzheimer's disease will one day become a reality.

Your future gift can either be:

• unrestricted to support the overall work of the Society; or
• designated to support a project or initiative that is particularly important to you, such as research, caregiver support, education or awareness.

How will this gift benefit you?

The funds of a registered plan are available to you during your lifetime to provide income during retirement. At the time of your death, the total proceeds of the registered plan are taxable. By gifting the total proceeds of the registered plan to the Alzheimer Society of Toronto, a charitable contributions receipt is issued and is available to be applied against 100 per cent of your net income on your final tax return.
If the receipt exceeds the taxable income of your estate, the balance can be applied against up to 100 per cent of your taxable income of the year preceding your death.

How do I donate a registered retirement plan?

• You need to designate the Alzheimer Society of Toronto as the beneficiary of the registered plan's assets.
• You can do this with an officer of the financial institution or insurance agency that is administering the plan.

If you are thinking about making a gift of a registered retirement plan, we recommend that you discuss the gift with your lawyer, accountant or other financial advisor, and family members.

For more information

If you'd like more information about how to take full advantage of gifts of RRSPs, contact your insurance agent, accountant or financial advisor. We'd also be pleased to help you with any questions you may have about your gift planning options. Contact us at johare@alzheimertoronto.org.

The Alzheimer Society of Toronto understands that donors consider estate and gift planning to be a strictly confidential matter. Please be assured your enquiry will be handled in a manner that respects your privacy and maintains confidentiality. See our Privacy page for more information.

[Note: Information on this page is not intended as specific financial planning or legal advice. You should always consult your legal advisors, financial planners and family members when considering a planned gift.]

Information adapted from the Alzheimer Society of Canada