Charities In RRSP

If the testator plans to make large charitable donations from his/her estate, tit may be advisable to receive professional advice beforehand, as there are a number of taxes – planning opportunities and pitfalls here. A gift made in the year in which the individual dies is deemed to have been made in the preceding year, to the extent that it was not deducted in the year of death. This applies to gifts otherwise deemed to be made in the year of death, and to gifts otherwise deemed to be made when the donee disposes of the non – qualifying security. The one – year carry back of donations provided is subject to ITA, s. 118.1 (13), with the result that where an individual makes a gift of a non – qualifying security after July 31, 1997 and in the year of the individual’s death, paragraph (a) of ITA, s. 118.1 (13) will deem the gift not to have been made, notwithstanding ITA, s. 118.1 (4). www.insuranceplancanada.com

Gifts made by an individual by will are deemed to have been made in the year of the individual’s death. Accordingly, the donation can be claimed on the terminal year return or in the preceding year, even though the transfer is made by the deceased’s representatives rather than the deceased, and might not be made until a subsequent taxation year. If the testator plans to make large charitable donations from his/her estate

At the time of writing, draft legislation proposed deeming certain donations to have been made by the estate in the year in which property was transferred to a qualified done. The draft proposals also provide for more flexible allocation for donations where such donations are made via proposed "graduated rate estates".

If the testator plans to make large charitable donations from his/her estate, tit may be advisable to receive professional advice beforehand, as there are a number of taxes – planning opportunities and pitfalls here. A gift made in the year in which the individual dies is deemed to have been made in the preceding year, to the extent that it was not deducted in the year At the time of writing, draft www.insuranceplancanada.com

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