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CentennialEdition_LEGACY-SOCIETY_SUMMER/FALL 2018

Baycrest Health Sciences & Baycrest Foundation Publications

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RRSPs for Charity Retirement funds are a tax- effective way to increase net worth during your lifetime but one of the worst ways to transfer wealth to loved ones. Mark Halpern, President of WEALTHinsurance.com, is a Certified Financial Planner (CFP), Trust and Estate Practitioner (TEP). He explains how to mitigate taxes, leaving more for your family and favourite charities. What happens when you cash in RRSPs/RRIFs? You received tax relief as an incentive to fund your retirement when you purchased your RRSP (Registered Retirement Savings Plan). However, any money you remove from the plan is considered income and is highly taxed. RRSPs and RRIFs (Registered Retirement Income Funds) are taxed at up to 54% (in Ontario), cutting those hard-earned savings in half when withdrawn or left to family. By example, an RRSP/RRIF of $1 million is worth only $460,000 to heirs. Save taxes on your RRSPs/RRIFs You have three possible beneficiaries to wealth: family, charity and the tax department. We can choose two of these and with proper planning leave a large sum to charity and not to the government. Consider a charitable gift using all or a portion of your RRSP/RRIF. Donors who name Baycrest as beneficiary of a registered plan: • Receive a tax receipt for the value of the donation which offsets the taxes owing. • Eliminate probate fees by removing these assets from their estate. • Reduce their estate taxes. How to donate RRSPs/RRIFs • Name Baycrest as beneficiary for all or part of your RRSP or RRIF by notifying your financial institution • Designate Baycrest as beneficiary for a specific amount or percentage in your Will. Donating RRSPs/RRIFs combines large tax savings for you with significant benefits for Baycrest. You and your family can be recognized for the gifts today. CPP Philanthropy™ You may not need your monthly Canada Pension Plan (CPP) benefits to pay your bills. That money gets taxed, re-invested and then taxed again. The CPP Philanthropy™ strategy uses government benefits to fund a permanent life insurance policy of more than $1 million, creating substantial tax savings for your family and a big gift for the causes you care about. Get Professional Help An experienced estate planner will help you plan a gift that best suits your financial and estate situation. Be remembered for leaving a large gift to charity instead of a large tax bill to CRA. Your biggest reward is teaching your children and grandchildren, by example, the importance of charitable giving. That's real legacy planning. Professional Advisory Committee The Professional Advisory Group of the Baycrest Foundation aims to educate financial, legal and accounting professionals for the purpose of offering advice to their aging clients and families. Co-Chairs: Irving Feldman | Joshua Wise Committee: Brian Belmont | Elisabeth Colson | Ashley Doidge Zak Goldman | Allan Kalin | Leon Kieselstein Israel Mida | Allan Rakowsky| Jack Rotsztain Alexandra (Ali) Spinner | Alexander J. Swabuk Errol Tenenbaum | Kimberly Whaley Baycrest Foundation | 3560 Bathurst Street Toronto, Ontario M6A 2E1 Charitable Registration Number: 11921 5242 RR0001 5

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