Donations in the Year of Death and in the Will

Up to 100% of a taxpayer’s net income can be claimed as donations in the year of death and the year preceding death, for purposes of calculating the donations tax credit. When a donation, or gift, is bequeathed in the will, it is deemed to have been made immediately before the individual died. An individual can name a qualified done as the beneficiary of an RRSP, RRIF or TFSA, or of a life insurance policy. Donations in the year of death can be claimed by the surviving spouse instead of the deceased taxpayer.

This tax tip is provided by TaxTips.ca