Did you know that if you die without a surviving spouse or a qualified beneficiary, the remaining value of your Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) is added to your income in the year of death and your estate pays the taxes? These taxes could take almost 50 per cent of the remaining funds!
Instead, you can donate all or a portion of your remaining RRSP or RRIF at the time of your death.
In this way, the donation credit could almost eliminate the taxes, allowing 100 per cent of the funds you worked so hard to save to go towards a cause in which you believe.
There are two ways to make this type of donation. Ask your financial advisor which one is best for you.
Designating The Ottawa Hospital Foundation as the Beneficiary of Your RRSP or RRIF
Proceeds will flow directly to us instead of passing into your estate, where they would be subject to income tax and probate fees. As well, your estate receives a tax credit for the value of your donation, which may completely offset the income tax owing on the proceeds.
Contact your financial institution and request a Change of Beneficiary form in order to designate The Ottawa Hospital Foundation as the beneficiary of your retirement plan.
Donating the Proceeds of Your Retirement Fund Through Your Will
You can leave instructions in your will to donate all or a part of the proceeds of your RRSP or RRIF to the Foundation. As well, you can phrase your clause so that the bequest is made only if your spouse predeceases you and you have no dependent children.
We strongly recommend you consult with your financial advisor if you are planning to donate your retirement income to the Foundation.
For more information, contact Andrea Peponoulas, Development Officer, at 613-798-5555, ext. 14677 or by e-mail at [email protected].