Making the Canadian Council of the Blind the beneficiary of a life insurance policy, RRSP, RRIF, or TFSA allows you to create a legacy at the Canadian Council of the Blind once your needs and those of your loved ones have been met. Donating all or part of an RRSP, RRIF, or TFSA is an effective way to reduce the taxes payable by your estate. It is a way to create a lasting gift for the future that is easy to set up and the perfect answer to fulfill your philanthropic intentions once you have made provisions for your family and loved ones.
If you die without a surviving spouse or qualifying dependants, the full remaining value of your RRSP or RRIF is added to your income in the year of death. Your estate must pay the taxes, which often create large tax liabilities for your estate. If your RRSP or RRIF has a registered charity as the direct beneficiary, your estate will receive a donation receipt for the entire value of the plan, offsetting any tax liability. A gift of the beneficiary of life insurance or a TFSA can add to the value of your estate with a charitable tax credit by reducing other taxes.
Benefits to you
- Control – You retain the use of the registered investment for the duration of your lifetime.
- Simple – It’s easy to arrange. Simply ask your financial institution to change the beneficiary designation to the Canadian Council of the Blind.
- Flexible – The designation is revocable and can be altered if your circumstances change.
- Cost-effective – There are no extra out-of-pocket costs.
- Eliminates probate, legal, and executor fees – Your gift will not be subject to probate costs or delays in settlement. The full proceeds are payable upon your death.
- Control – Not a matter of public record, allowing you to remain anonymous. Additionally, a beneficiary gift cannot be contested.
- Opportunity – An opportunity to make a significant gift.
- Recognition – Become a member of the 1944 Legacy Society and receive recognition on our digital donor wall and an exclusive pin.
How to give
- Name the Canadian Council of the Blind as the direct beneficiary of your life insurance policy, RRSP, RRIF, or TFSA. Upon your death, the proceeds will be paid directly to the Canadian Council of the Blind without going through probate and without delay.
- Or, name your estate as the beneficiary and leave instructions in your Will to donate all or part of these financial instruments to the Canadian Council of the Blind. You may specify a percentage or a specific dollar amount to be donated if you wish. Note: Your trustee will withhold taxes, and probate will apply when choosing this option.
In both cases, a charitable tax credit will be created for your estate, offsetting taxes and possibly enhancing the estate value for other beneficiaries. See the financial institution administering your life insurance policy, RRSP, RRIF, or TFSA to change the beneficiary.
An example
Mrs. Jones makes the Canadian Council of the Blind the beneficiary of her RRIF. This leaves a legacy gift of $120,000 to the Canadian Council of the Blind when she dies. Here is what happens:
- Mrs. Jones creates a future gift for a time when she no longer needs it and has a meaningful impact on the Canadian Council of the Blind.
- Her estate receives an immediate tax credit of $120,000, offsetting other taxes of approximately $54,000 that can be distributed to heirs.
Please seek expert advice. The Canadian Council of the Blind strongly recommends that you seek professional financial, insurance, and/or legal advice to ensure your financial goals are considered, your tax situation is reviewed, and your legacy gift is tailored to your circumstances. A financial or legal advisor should review in detail what plan best fits your needs. Before considering a legacy gift, you should have already satisfied the needs of your family.
For further information, please contact Braydin Frizell at [email protected].