Gifts of RRIF or RRSP Funds

This is a popular way to offset taxes owing on funds at the time of death. You can name JA Southern Alberta as your beneficiary and your gift will be treated as a charitable donation in the year of death and is therefore eligible for a tax credit on your final tax return, and/or the one immediately preceding the final return. Typically these funds pass on tax free to a surviving spouse; however, on the death of the surviving spouse, the total remaining value of those funds becomes taxable on that individual’s final tax return. By naming a charity beneficiary, you can often eliminate all or most of the tax paid on your estate because in most circumstances, the tax credit generated by the gift will fully offset the tax owing.

Also, you can do a tax-free conversion of your RRSP to a life annuity which guarantees fixed lifetime payments which are taxed on a per payment basis. By purchasing an annuity with your RRSP and making a charitable contribution at the same time, you reduce taxes payable.