Ways of Giving: Life Beneficiary Gifts

Life Beneficiary Gifts are like a quick and easy bequest.

It may seem like leaving a legacy gift might take up a lot of time and consulting fees, but there is one kind of legacy gift that you can set-up in a minute and costs nothing to administrate. Simply make your church a beneficiary of your Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF), Tax‐ Free Savings Account (TSFA) and/or Life Insurance Policy. By naming your congregation or The Presbyterian Church in Canada as the beneficiary of the proceeds of your RRSP, RRIF, TFSA or Life Insurance you can provide a substantial future gift to an area, program, mission or ministry that you deeply care about. Donating all or part of an RRSP or RRIF is an effective way to reduce the taxes payable by your estate.

If you die without a surviving spouse or qualifying dependents, the full remaining value of your RRSP or RRIF is added to your income in the year of death, and your estate must pay the taxes, often creating large tax liabilities. If your RRSP or RRIF names a registered charity as the direct beneficiary, your estate will receive a donation receipt for the entire value of the plan, offsetting any tax liability. The tax receipt can be used as a charitable tax credit that can be used in your final tax return. In all cases, you minimize taxes and make an impactful legacy gift.

Benefits of Gifting RRSPs, RRIFs and TFSAs

Control – You retain the use of the registered investment for the duration of your lifetime. And you get to choose the area of the church you would like to support.

Simplicity – Easy to arrange. Simply ask your financial institution to change the beneficiary designation to the full legal name and address of your congregation or to The Presbyterian Church in Canada or any ministry area you would like to support

Flexibility – The designation is revocable and can be changed if your financial circumstances change.

Cost Effective – There are no extra out‐of‐pocket costs.

Eliminates Probate, Legal & Executor Fees – Your gift will not be subject to probate costs or delays in settlement. The full proceeds are payable upon your death.

Peace of Mind – You can plan, arrange and announce the gift yourself and you will know that it will occur just as planned.

Outside Your Estate – Your gift is not a matter of public record, allowing you to remain anonymous if you wish. This type of beneficiary gift cannot be contested.

Satisfaction – You have the satisfaction of knowing that you have created a lasting legacy and that your gift will support vibrant mission and ministry far into the future.

Recognition – Your gift can be honoured during your lifetime

How to Set-up a Life Beneficiary Gift

Visit or contact the financial institution administering your RRSP, RRIF, TFSA or life insurance policy to change the beneficiary

 Request a Multiple Beneficiary Designation form from your plan administrator.

You can name your congregation, The Presbyterian Church in Canada, and/or another ministry of the church as the direct beneficiary(s) of your RRSP, RRIF, TFSA or life insurance policy. Upon your death, the proceeds will be paid directly to the church without going through probate and delay.*

Once you’ve completed the form, return it to the plan administrator.

A charitable tax credit will be created for your estate, offsetting taxes and possibly enhancing the estate value for other beneficiaries.

*Please note: You can also name your estate as the beneficiary and leave instructions in your will to donate all or part of the proceeds to charity. However, your trustee will withhold taxes and probate will apply when choosing this option.

An Example of Generosity

Mrs. Jones makes The Presbyterian Church in Canada the beneficiary of her TFSA when she dies. This leaves a legacy gift of $120,000 to the Church.

Mrs. Jones creates a faithful future gift when she no longer needs it to have a meaningful impact on the future of Church.
Her estate receives an immediate tax credit of $120,000, offsetting other taxes of approximately $54,000 that can be distributed to heirs.