Giving RRSPs or RRIFs

By leaving a gift of RRSPs/RRIFs to the QEH, you will provide continuing support to your Island’s largest hospital, with the added benefit of reducing or eliminating taxes upon death. Many people believe only rich individuals save more tax on donations than others will save. However, in fact, Islanders paying taxes will save about 25% ($50) on the first $200 of donations and between 45.70% and 47.37% on donations over this amount, after adding all donations together.

A Simple Example
(assuming a 46% tax credit)

Suppose that you have RRSPs/RRIFs worth $100,000. By designating the QEH Foundation as the beneficiary of these retirement funds, your estate would receive a charitable tax receipt for $100,000, reducing, and very likely eliminating, taxes on the cashed in value. In fact, unless you are in the highest tax brackets, the donation will also reduce taxes on your other income.

RRSP/RRIF left to your EstateRRSP/RRIF left to the QEH Foundation
Value of RRSP/RRIF$100,000$100,000
Taxes Payable on death1$25,000 – $47,000$25,000 – $47,000
Donation Receipt$0$100,000
Tax Savings$0$46,000
1 Assuming no other credits or deductions, your tax rate depends on how much other income you have in the year of your death, and will range from approximately 25% to 47%.

It is as easy as contacting your RRSP/RRIF administrator and naming the QEH Foundation as a charitable beneficiary.

RRSPs/RRIFs are processed outside of your estate, therefore, not subject to probate and executor fees.

On the day of death, all assets are considered to have been disposed of at fair market value. With few exceptions, a gift to the QEH Foundation can help you reduce the amount of tax owing by your estate and preserve as much as possible for your family.

Life is more precious when there’s less of it to waste. Thank you to all who support the QEH.

Joan McGrath was born and raised in Lorne Valley and she had passed away in 2020. In her will, she named the QEH a beneficiary of her Registered Retirement Income Fund (RRIF). By naming the QEH a beneficiary, Joan’s estate received a charitable tax receipt, helping reduce the amount of tax owing. Joan loved her family and also wanted to help improve health care for Islanders. She did both.