My son is living with a physical disability. Do you have any financial resource suggestions?
Dear Cheryl&Mack,
My son has a physical disability, and I've been wondering if there are any financial resources or options available that can help us out.
I'm pretty determined to secure the best for him, so I'm looking for some expert advice.
Can you point me in the right direction or share some insights?
Signed,
Concerned Parent
Dear Concerned Parent,
One valuable financial resource for individuals with disabilities in Canada is the Registered Disability Savings Plan (RDSP).
A registered disability savings plan (RDSP) is a savings plan intended to help parents and others save for the long term financial security of a person who is eligible for the disability tax credit (DTC).
First, you need to know if your child would qualify for the RDSP.
If the individual meets all of the following criteria, he would qualify for the RDSP.
1. Is eligible for the DTC (disability tax credit) (unless transferring from an existing RDSP to a new RDSP).
2. Has a valid social insurance number (SIN).
3. Is a resident of Canada when the plan is entered into.
4. Is under the age of 60 (a plan can be opened for an individual until the end of the year in which they turn 59).The age limit does not apply when a beneficiary’s RDSP is opened as a result of a transfer from the beneficiary’s former RDSP.
The next step would be opening the plan.
If the beneficiary is under the age of majority, a qualifying person, (parent, guardian) can open an RDSP for the beneficiary and become a holder.
If the beneficiary has reached the age of majority and is contractually competent to enter into a plan the beneficiary can open an RDSP for themselves.
If an individual, who is eligible to be a beneficiary of an RDSP, has reached the age of majority but is not contractually competent to enter into a plan, a qualifying person, who is legally authorized to act for the beneficiary, under the provincial legislation, can open an RDSP and become a holder.
In order to take full advantage of the RDSP, it's crucial to consult with Cheryl, here at CC&Associates to help you understand the eligibility criteria, contribution limits, and the impact of government grants and bonds.
If you’re interested in learning more, reach out here.