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Can I gift my RRIF to my children while I’m still alive so I can see them use it?

Ask the professionals – October 2017

Written by Dave Lee
October 11, 2017

Yes, this is possible, but you need to be aware of the tax consequences. Unless your RRIF is “locked in” as the result of a pension plan transfer, you can withdraw more than the annual minimum payment, up to the full account balance.

However, any amount taken from your RRIF is taxable, and withdrawing it all at once could result in a big tax bill – the top marginal rate will increase to 49.8% in 2018.

Another option is to make larger withdrawals and pay as little as 20% tax each year, depending on your other income sources. You can then make gifts to your children with the extra funds this accelerated drawdown provides.

Ensure your desire to help does not to jeopardize your long-term financial security and be sure to consult with a financial professional who can guide you in making the decision that’s right for you.