Strategic Legacy Planning

RRSPs, RRIFs, and Charitable Contributions Maximizing Benefits Through Thoughtful Designations.

A recent survey revealed that only 12% of Canadians currently plan to leave a legacy gift, with a third undecided or yet to consider it. To optimize your financial legacy for your family and minimize taxes, consult your financial planner regarding potential charitable gifts. Your charitable gift can encompass RRSPs, RRIFs, and locked-in RRSPs/LIFs, contingent on accurate beneficiary designations for registered funds. The approach varies based on your circumstances. If securing your spouse's future is a priority, designate them as the beneficiary to ensure a tax-free transfer of registered funds in the event of your passing. This also applies to common-law spouses. In the absence of a surviving spouse, consider directing funds to your preferred charities.

The amount redirected to charity qualifies for a charitable tax credit, significantly reducing your overall tax liability upon your passing. For those with a surviving spouse, designate the charity as the contingent beneficiary for your registered funds. This arrangement ensures that, in the unfortunate event of both you and your spouse's passing, the funds can seamlessly transition to the chosen charity /or others not too close relatives.

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