Leaving a bequest through your will is the easiest and most important way to help the charitable causes you care about.
Why Give Retirement Fund Assets to Charity
Did you know that if you pass away with retirement fund assets (RRSPs and RRIFs) in your estate, these assets will be taxed as income on your final tax return? This can result in the loss of up to half of your plan’s assets.
Making Habitat for Humanity Sault Ste. Marie & Area a primary or co-beneficiary of your registered retirement savings plan (RRSP) or registered retirement income fund (RRIF) may enable you to make a significant difference and reduce the amount of taxes that your estate would otherwise have to pay.
When you name a charity as primary or co-beneficiary of your RRSP or RRIF, your estate will receive a charitable donation receipt for the value of the gift proceeds received after you pass away. As this is an asset that resides outside of the estate, it is not subject to probate fees and the charitable donation receipt may help offset other taxes owing on the estate.
Benefits to Donating Gifts of Registered Fund Assets:
- You retain full access to your retirement funds for the duration of your lifetime.
- The designation is revocable and can be changed if your financial and/or life circumstances change.
- At time of passing, retirement fund accumulations are subject to full taxation at your top marginal tax rate. By naming Habitat for Humanity Sault Ste. Marie & Area as a beneficiary, gift proceeds directed to the organization are not subject to probate and estate fees as your RRSP/RRIF exists outside the estate settlement process.
- Funds that otherwise would be lost to taxation are redirected to help hundreds of working, lower-income families build strength, stability, and self-reliance through affordable homeownership.
Two ways to contribute the proceeds of an RRSP or RRIF:
- You can designate Habitat for Humanity Sault Ste. Marie & Area as the primary or co-beneficiary of your RRSP or RRIF. Upon your passing, the proceeds will be paid directly to Habitat for Humanity Sault Ste. Marie & Area.
- You can name your estate as the beneficiary of your RRSP or RRIF and leave instructions in your will to donate all or part of the RRSP or RRIF to Habitat for Humanity Sault Ste. Marie & Area. You may specify a percentage of the RRSP or RRIF or a particular dollar amount to donate.
What are my next steps?
- Make an appointment with your financial advisor or lawyer to review your personal and financial situation and goals.
- Inform your financial advisor that you would like to update your Retirement Plan naming Habitat for Humanity Sault Ste. Marie & Area as the primary or co-beneficiary of your RRSP or RRIF to determine if a change of beneficiary form needs to be completed, or ask your lawyer to leave instructions in your will.
- Contact Habitat for Humanity Sault Ste. Marie & Area to inform us of your gift to ensure we honour your gift intentions as you wish.
We are here to help
Should you decide to make Habitat for Humanity Sault Ste. Marie & Area a beneficiary of your retirement fund assets, we hope you will share your decision with us so that we can express our gratitude today. Your gift intention will be held in strictest confidence.
The correct legal name to include is:
Habitat for Humanity Sault Ste. Marie & Area
111 Elgin Street, Suite 303
Sault Ste. Marie, Ontario
Charitable Registration # 865217756RR0001
For More Information:
Contact Chelsey Foucher at (705) 575-0020 ext. 224 or email@example.com to discuss your particular situation and ask any questions you may have about supporting us with a gift of retirement plan funds.
Let’s work together to ensure your legacy lives on.
This information and material is intended to provide general examples and reference tools for understating the way in which charitable gifts may be made to Habitat for Humanity and is for illustration purposes only. Habitat for Humanity does not give legal or financial advice.
Habitat for Humanity strongly recommends donors review this information and material and consult with independent legal, financial and/or tax advisors. This will ensure you receive appropriate legal advice, your financial goals are considered, your tax situation reviewed and your legacy gift is otherwise tailored to your personal circumstances.
Habitat for Humanity protects the privacy of all of the information that you share with us. The personal information that you provide to Habitat for Humanity will be used to provide tax receipts, to contact you regarding your gift, and to keep you informed of other Habitat for Humanity events. Habitat for Humanity maintains a strict policy of honouring donor privacy. Under no circumstances will Habitat for Humanity share, trade, or sell any of our donor information.
*Updated Oct. 21, 2020