Navigating all 395 pages of the Registered Disability Savings Plan (RDSP) User Guide can be daunting because of the depth of information provided.  Two terms encountered frequently are the beneficiary and the account holder.  While these two roles are linked, they represent different responsibilities within the plan. The beneficiary Simply put, the beneficiary is the … Read more

The Canada Disability Savings Bond is specifically designed for people who cannot afford to contribute to a Registered Disability Savings Plan (RDSP), yet thousands of eligible Canadians are leaving money on the table because they haven’t opened an account.  For each year that a beneficiary is 49 years of age or under and has 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

When an adult child on the Ontario Disability Support Program (ODSP) resides in the home of the parents or guardians, how does the family maximize the child’s provincial disability supports without creating tax implications for the parents?  The following guide explores the ODSP shelter allowance, and how the Canada Revenue Agency (CRA) views family arrangements … Read more

It’s a question that arises when asking about withdrawals from an Registered Disability Savings Plan (RDSP), “What if someone withdrawals just the interest gained on investments inside the RDSP? Or what if they only withdrawal the personal contributions leaving government grants and bonds intact inside the account, will they still have to pay the 3 … Read more

Choosing to begin Lifetime Disability Assistance Payments (LDAP) from a Registered Disability Savings Plan (RDSP) isn’t always about clearing the 10 year Assistance Holdback Amount (AHA) period, it’s also about maximizing tax deferred compounding versus the opportunity cost of inflation.  Those fortunate enough to have opened an RDSP earlier in life may have the choice … Read more

When the beneficiary of a Registered Disability Savings Plan (RDSP) passes away, the account must be closed and all remaining funds paid out by December 31 in the year after the year of death.  For example, if the beneficiary passes away in 2026, the account must be closed by December 31, 2027. The administration of … Read more

The Registered Disability Savings Plan (RDSP) is the most generous registered account available to Canadian with disabilities, and it is vital to empowering financial independence for the beneficiary.  In addition to opening the account, the account holder may be responsible for selecting investments inside the RDSP which could drastically alter the value of the account … Read more

We know that the Registered Disability Savings Plan (RDSP) has a $200,000 lifetime personal contribution limit.  However, let’s say that an RDSP holder tries to deposit $201,000 (for example) from their chequing account. How will the bank handle the transaction?  Would the bank deposit $200,000 into the account and return $1,000 to the chequing account? … Read more

The Ontario Disability Support Program (ODSP) covers transportation costs for medical appointments provided they are $15 or more per month.  When travel expenses are approved, the most economical mode of transportation must be used.  Clients will not be permitted to take an expensive taxi if cheap public transportation is available unless a medical professional confirms … Read more