Budget proposes changes to donations made by Will
The Federal Budget February 2015 proposed donations made by a will under a RRSP, RRIF, TFSA or life insurance policy will no longer be deemed to be made by an individual immediately before their death. Charitable donations made as a consequence of the donor’s death will be deemed to have been made by the individual’s estate at the time the property is transferred to a qualified done, if the transfer occurs within 36 months after death.
The trustee of the individual’s estate will have the flexibility to allocate the available donation amount the tax year in which the donation is made, an earlier tax year and the last two tax years of the individual.
The proposals apply to donations made by Will after 2015. They provide greater flexibility for gifts made through a donor’s will or as a consequence of a donor’s death, but also may pose difficulties for complex estates to make a donation in the required 36 month time frame.
See more of PWC’s Tax Insights: 2014 Federal Budget and how it affects you and the charitable sector.