Question: My father is 85 years old. He has investments in GICs and CSBs. None of his investments are tax sheltered. Can he move any of his investments into a RRIF? If not then what else can he do to reduce his taxable income?
Gordon Pape answer: No, he cannot move any money into a RRIF. The assets in a RRIF can only originate from another registered plan, usually an RRSP.
In your father’s case, The only way to reduce tax would be to re-structure The portfolio to move some or all of The assets out of interest-bearing securities like GICs and CSBs. Interest is taxed at The highest marginal rate, so your dad gets no tax breaks.
Alternatives would be preferred shares (dividends are eligible for The dividend tax credit), real estate investment trusts and royalty income trusts. A financial advisor can provide specific recommendations.