Gifts of RRSPs or RRIFs

The tax implications of RRSP and RRIF withdrawals can be costly. RRSPs and RRIFs are among the most heavily taxed assets in an estate settlement scenario. Depending on what your financial situation is, it may be beneficial to consider donating your RRSPs or RRIFs, in whole or in part, to the HEC Montréal Foundation during your lifetime or upon your death.

Gifting before death (RRIFs)

• Any RRSPs you hold must be converted into an RRIF by December 31 of the year in which you turn 71. Mandatory RRIF withdrawals must then be made every year. These amounts are subject to the same taxes as RRSP withdrawals.
• Most people use RRIFs to meet their living expenses in their retirement years. But for others, this source of revenue is not only unnecessary, it actually adds to their taxable income. If this situation applies to you, you may wish to consider making arrangements to donate your RRIF withdrawals. Tax receipts for these donations will allow you to realize significant tax savings.

Gifting at death (RRSPs/RRIFs)

In Quebec, a charitable organization can be designated as an RRSP or RRIF beneficiary only through the donor’s will or life insurance policy. (Note that certain paperwork must be filled out for an RRSP or RRIF held under a life insurance contract.)