As part of your client’s estate plan, they could consider designating Abundance Canada as the full or partial beneficiary of a registered account. Registered accounts include: Registered Retirement Saving Plan (RRSP), Registered Retirement Income Fund (RRIF) and Tax-Free Savings Account (TFSA).
Your client maintains full use of their registered account during their lifetime, and any balances that remain at their death would transfer to the designated beneficiaries.
Benefits of Donating a Registered Account
- Payments from a registered account to a designated beneficiary generally pass outside of the estate, which can reduce probate fees.
- The payments are made directly to the designated beneficiaries and are not exposed to any claims on the estate by creditors.
- Donation receipts are issued for the amounts received by Abundance Canada, which can be used to offset taxes owing by the deceased or their estate.
Why Name Abundance Canada as the Charitable Beneficiary of a Registered Account?
- We simplify the process for the executor / executrix, estate administrator.
- One charity named as the beneficiary means less paperwork to process and fewer donation receipts to track
- Donor advised Generosity Plan™ at Abundance Canada allows the single donation to benefit multiple charities
- No need to name each charity as a beneficiary of the registered account
- Client does not need to revise their beneficiary designation if they want to change the charity, or charities, they wish to support
- Client contacts Abundance Canada to update their Generosity Plan distribution recommendations
- If a charity on the client’s distribution recommendation list ceases to exist, the client or their designated representative can recommend an alternate charity
Tax Tips
- RRSP or RRIF payments to a beneficiary are taxable income of the deceased.
- Any amount paid to a beneficiary from a TFSA would not be taxable income.
Download a copy of the Information Sheet for donating Gift of Registered Accounts for your records or to discuss with your client.
Next Steps
Contact Abundance Canada if you have clients who might benefit from the donation of a registered account.