Gifts of Registered Funds (RRSP and RRIF)

A Meaningful Way to Reduce Taxes and Create Kingdom Impact

Saving for retirement is an essential part of financial planning. But many people are unaware of what happens to their RRSP or RRIFwhen they pass away, or how these assets can create a powerful legacy of Christian ministry.

When structured wisely, your registered funds can support the people and ministries you care about and significantly reduce the taxes owed by your estate.

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What Happens to Your Registered Funds When You Pass Away

Your RRSP or RRIF is considered taxable income in your year of death, unless it is transferred to:

• A surviving spouse, or
• A financially dependent disabled child

If one of these beneficiaries is named, the registered funds can roll over to them without triggering immediate tax.

However, if no eligible rollover beneficiary exists, the full balance in your RRSP or RRIF is added to your income in the year of your death. That amount can easily push your estate into the highest marginal tax rate, significantly reducing the inheritance intended for loved ones or charitable causes.

This is why many Canadians choose to include a charity like Heritage directly in their RRSP or RRIF beneficiary designations.

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How a Charitable Gift Can Reduce Taxes

Canadian tax rules allow your estate to receive charitable tax credits for up to 100 percent of your income in the year of death (and one year prior). This means:

• A charitable gift of registered funds can offset the tax generated by your RRSP or RRIF
• In some cases, it can reduce the final tax bill to zero

For many Christian donors, this is a wise and faithful way to give: using assets that would otherwise be heavily taxed to strengthen ministries that align with their values.

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Why Consider Naming Heritage as a Beneficiary

Designating Heritage as a beneficiary of your RRSP or RRIF is:

Simple

A beneficiary change requires no lawyer and no updates to your will. It can be done through your financial institution.

Tax Efficient

Funds left to Heritage receive a charitable receipt, which can offset the tax otherwise owed on your registered assets.

Probate Free

Because RRSP and RRIF proceeds pass outside the estate when a beneficiary is named, they do not go through probate.

Impactful

This can be a final, meaningful way to support the training of future pastors, missionaries, and gospel‑driven leaders—an enduring legacy of ministry.

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Benefits at a Glance

• A cost‑free and straightforward way to reduce or eliminate estate taxes
• Charitable gifts made through RRSP or RRIF designations bypass probate
• An opportunity to leave a lasting legacy that reflects your faith and values
• A way to steward resources faithfully and intentionally at life’s end

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We’re Here to Help

If you are considering leaving a gift to Heritage through your RRSP or RRIF, we would be honoured to walk with you.
Our Donor Development team can answer your questions and help you explore the options that best reflect your goals, values, and stewardship priorities.