Designed to provide financial assistance to disabled individuals and their families in need of help, the Ontario Disability Support Plan (ODSP) amended their regulations for beneficiaries who receive ODSP when it comes to both income and assets.
The Key Amendments That Most Impact Estate Planning Include:
· Raising asset limits. As of January 2018, those receiving ODSP benefits are now able to own up to $40,000 in liquid assets per single person and $50,000 per couple. A significant change from the previous $5,000 and $7,500.
· Income Limit Increase. As of September 1st, 2017, ODSP recipients can now receive 10,000 a year from a cash gift or voluntary payment from a trust distribution or insurance policy without it impacting their benefit. Before this the maximum amount allotted was $6,000.
· Certain Gifts Are Now Exempt From Income. In the past many types of gifts received by an ODSP participant were treated as income during the month in which they were received and thus clawed back from the benefit. However, as of September 1st, 2017 a gift in any amount does not reduce the benefit amount as long as it is used for first or last month’s rent, or to purchase a vehicle or principal residence.
Coupled with the above ODSP amendments, recipients under the plan also saw a 2% increase on September 1st, 2017. When it comes to life insurance and life insurance held in a trust, the cash surrender and asset value remains at a total of $100,000.
When it comes to using an Absolute Discretionary Trust (commonly referred as a “Henson Trust”), this was not affected by the above amendments. Henson Trust allows their Estate Trustee complete discretion over the trust so that he/she may continue to pay the necessary expenses of the disabled child. As a result of the Henson Trust, families have the assurance that their disabled child will be provided for in the years to come while knowing that he/she cannot compel the estate trustee to make payments.
As an advocate for those with disabilities, David H. Blascik, CFP’s, mission is to help every client recover ALL Disability Tax Credits that may have gone unclaimed over the past 10 years. He has worked with many different variables and has helped individuals receive up to $4,000 a year – tax free!
David specializes in all processes involved with Disability Tax Credit applications and is happy to meet with you for a free no obligation consultation today!
disorder among children in Canada.
To be clear, one in 66 youth have autism.
What is even more disheartening than those statistics is that recent data shows when it comes to
disability tax credit claims in Canada, applications related to mental functioning are consistently the
ones that are rejected the most.
How does that make sense?
Last November a group that represents Canadians living with and caring for those with autism said too
many families are having to fight with the Canada Revenue Agency to ensure they can receive the Disability Tax Credit.
Since then, Autism Canada says it’s heard from a multitude of families saying they have to apply and re-
apply for the tax credit for their children over and over again. Even older adults with autism are
reporting that, after qualifying for the disability tax credit for years, the CRA is now revoking the credit
without warning.
Why?
“Our perception is, from speaking with our constituents, that there’s been a more aggressive approach
to not just the original application process, but also the review process,” Dermot Cleary, the chair of the
board of directors of Autism Canada, told CTV News Channel.
The reality of autistic Canadians is also being overlooked by the lack of proper representation on the 12-
member Disability Advisory Committee, which was reinstated just last year. This volunteer committee oversees the two programs but doesn't have representation from Canadians living with neurodevelopment disabilities, including autism or episodic disabilities, such as multiple sclerosis.
As an advocate for those with disabilities, David H. Blascik, CFP’s, mission is to help every client recover
ALL Disability Tax Credits that may have gone unclaimed over the past 10 years. He has worked with
many different variables and has helped individuals receive up to $4,000 a year – tax free!
Being approved for the DTC is also a precondition for accessing a number of other benefits, including
RDSP. The RDSP helps people with severe disabilities and their families to save for the future and the
idea of the program was hailed as one of the most progressive savings plans in the world. Yet the reality
is less favourable as fewer than 15 per cent of Canadians with qualifying disabilities are accessing this
program.
Do you qualify to receive substantial refunds via the DTC and related programs?
David specializes in all processes involved with Disability Tax Credit applications, is happy to meet with
you for a free, no obligation consultation today !