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I have invested well and now I am in my 80s. My RIF is almost $3 million and is going to attract heavy taxes. My other investments are about $2 million, some with capital gains which we are going to donate to charity.
Any suggestions on how to reduce the huge tax liability? Should we incorporate?
—Amy
RRIF withdrawals and estate planning for seniors with large investment portfolios
One of the problems with a large retirement account is a big, deferred tax liability. There are definitely worse problems to have, but many seniors still wonder how to minimize tax on their investments and maximize their estate.
Registered retirement income fund (RRIF) withdrawals are fully taxable and added to your income each year. You can leave a RRIF account to your spouse on a tax-deferred basis. But a large RRIF account owned by a single or widowed senior can be subject to over 50% tax. A RRIF on death is taxed as if the entire account is withdrawn on the accountholder’s date of death…
