Gifts of Registered Retirement Savings Plans
You may name The Canadian Red Cross Society as a direct beneficiary of your Registered Retirement Savings Plans (RRSP) or Registered Retirement Income fund (RRIF).
If the beneficiary of your RRSP is someone other than your spouse, common law partner, a financially dependent child or grandchild, the proceeds of the RRSP will be taxed as ordinary income in your estate. However, if you name a charitable organization, the total amount of the RRSP (or designated portion) will be given directly to the charitable organization and will not be subject to probate. Your estate will receive a charitable donation tax receipt for the total amount that has been gifted through your RRSP.
Thus by using your RRSP or RRIF to make a bequest to The Canadian Red Cross Society, you can maximize the value of your estate. If you have already named a beneficiary of your RRSP but would like to include or change the beneficiary to The Canadian Red Cross Society, simply call your financial advisor or financial institution and ask to change the beneficiary designation.