How to be generous beyond your lifetime

Julie Cole | Feb 1, 2013

Briercrest has many donors who have provided for a legacy. Here’s an illustration of how this is being done.

David and June had paid attention to preparing for retirement over many decades and with advice, had carefully tended to their registered investments, rejoicing in the growth and sometimes distressing over declines. Now well into retirement, they realized that it was possible that much of that money would remain behind after the death of the surviving spouse. A friend said that this money could not be left to the children and that half of whatever was left would go to the government anyway and there was not a thing they could do about it.

While meeting with an estate specialist from ADVISORS with Purpose, David and June learned that indeed registered assets can only be passed to a surviving spouse or disabled child and in the absence of either, the assets will be added into income, generating a very large tax liability against the estate.

However, they further learned that the Canadian government has recently made changes that will allow a charity to be named the beneficiary of registered accounts, meaning they could leave their entire RRSP/RRIF to charity at death and through the resulting donation receipt, effectively wipe out the entire tax liability. David and June decided that they would rather any remaining registered assets benefit Briercrest than the government and so instructed their RRSP provider to include Briercrest as a secondary beneficiary.

Through our partnership with ADVISORS with Purpose, we are pleased to offer you a complimentary and confidential review of your Will and estate. Call today and speak to one of their qualified specialists. 1.866.336.3315