Horse Protection Society of BC

Legacy Giving

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The Horse Protection Society relies entirely on the generosity of our supporters to fulfill our mission to support and promote the total well-being of horses. There are several ways to make a legacy gift including:

1. Create a Bequest in your Will

If you choose to name HPS as a beneficiary in your will, you will leave a legacy that lives on in the lives of countless horses.

We will work with you and your legal counsel to determine the most appropriate bequest you can make. Please contact us directly for assistance.

2. Name HPS as the Beneficiary of a Life Insurance Policy

3. Name HPS as the Beneficiary of an RRSP or RRIF

Many Canadians are shocked to learn that the assets held in a Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) become fully taxable income to one’s estate in one’s year of death (unless a beneficiary designation allows the plan to be rolled over to a spouse or dependent child).

By making The Horse Protection Society of BC the named beneficiary of your RRSP or RRIF, the donation tax credit can dramatically reduce or even eliminate your tax liability.

When you name a charity as the direct beneficiary of a RRSP or RRIF, your estate is entitled to a donation receipt for the amount paid out on death. As this asset passes directly to the charity, probate taxes can be avoided and the risk of creditor claims can be minimized.

You can make the change of beneficiary by completing paperwork with your financial institution but it is always a good idea to include your intentions with such accounts in your will as well.

4. Other Ways to Give Using Your RRSP or RRIF

Many people have considered donating to charity but what has perhaps been overlooked, is a planning opportunity that has always been available should you wish to donate a portion of your RRSP or RRIF to charity. Note, this opportunity produces the best results if you’re not in the top tax bracket, which kicks in at income over $120,000 for 2007, as will be explained below.

Say you wish to donate $1,000 of stock from your RRSP to charity. You will face tax on the $1,000 withdrawn at your full marginal tax rate but you will also be entitled to a donation receipt equal to $1,000.

For someone in the top tax bracket, it’s a simple in and out - the tax on the RRSP withdrawal will be offset by the donation tax credit.

For everyone else, however, because you get a donation credit at the highest rate for any donations you make over $200 per year, the credit can exceed the tax on the RRSP withdrawal, allowing you to use the remaining donation credit to offset tax on your other income.

Let’s assume that Eli is retired and is living on income from his investments which totals about $25,000 a year, putting him in a 21% tax bracket in Ontario. Assuming he already made $200 of donations during the year and he makes a special donation of $1,000 from his RRSP, Eli would owe $210 of tax on the RRSP withdrawal but he would also receive a tax receipt for $1,000, which is worth just over 40% or $400 in tax savings.

In other words, by donating $1,000 of RRSPs to charity, he not only withdraws the funds ‘tax-free’ but also gets an additional $190 ($400 -$210) of tax credits, which can then be used to reduce taxes on his investment income.

by Jamie Golombeck, CIBC

*Always consult with your tax advisors for the most current figures and advice.