Taxes
When an individual passes away, their estate automatically becomes a legal trust in the eyes of the Canada Revenue Agency (CRA). While most people are familiar with filing a final personal T1 tax return for the deceased, many are unaware that the estate may also have to file its own annual tax return, namely the … Read more
If a person with a disability receives an inheritance directly, they may lose their provincial disability benefits because these programs have strict asset limits. One of the goals of creating an inheritance plan for a disabled child is to allow them to maintain their quality of life while ensuring they are not disqualified from provincial … Read more
One of the more common mistakes is assuming is that the caregiver must share a roof with the disabled dependent to claim the Canada Caregiver Credit (CCC). Physical residency is not the requirement, dependency is. If a dependent with a physical or mental impairment relies on their family caregiver for some or all of the … Read more
The Home Accessibility Tax Credit (HATC) is a non-refundable tax credit designed for renovations that make a home safer or more accessible for seniors (65+) or individuals eligible for the Disability Tax Credit (DTC). For the 2026 tax year, individuals can claim 15% of the first $20,000 in eligible expenses per year, resulting in a … Read more
The primary residence is often the most significant asset a parent can leave behind, but it’s also the most legally complex especially when the child is disabled. Because every situation is unique, deciding the ideal plan requires careful consideration of long term needs of the beneficiary, tax implications, and provincial benefit rules. Shared ownership (joint … Read more
The costs associated with supporting a disabled family member can be overwhelming, and being approved for the Disability tax credit (DTC) helps offset these expenses. However, because it is a non-refundable credit, its value depends on the claimant’s taxable income, which is often zero for persons who receive provincial disability supports. If the qualified DTC … Read more
It is well understood that the Registered Disability Savings Plan (RDSP) is tax-deferred, meaning it is not taxed until withdrawn. So how are Lifetime Disability Assistance Payments (LDAPs) taxed? Are the taxes paid by the beneficiary or the account holder? Are they subject to withholding taxes the same way withdrawals from Registered Retirement Savings Plans … Read more
Turning age 60 is a milestone for any RDSP holder, as the 10 year proportional repayment rule ends, and Lifetime Disability Assistance Payments (LDAPs) must begin. However, if a beneficiary is also receiving provincial supports such as ODSP, does this result in the loss of benefits? Before age 65 – while still receiving provincial disability … Read more