Budget 2015 included an exciting extension for individuals with a disability and their families with respect to registered disability support plans (RDSPs). Budget 2012 had previously introduced a temporary measure to help those with a disability open an RDSP if the person with a disability did not have the ability to enter into a contract and did not have a legal representative such as a guardian or Power of Attorney for Property. In such cases, certain qualifying family members, including a parent or a spouse, can become the RDSP holder. This temporary measure was originally put into place until December 31, 2016. However, this deadline has been extended to December 31, 2018.
This is very good news especially if it is questionable whether the individual would have the capacity to enter into an RDSP contract. After December 31, 2018, unless other measures are put into place by the government, a legal representative such as a guardian or Power of Attorney for Property must open the RDSP if the person with a disability is found to lack the ability to enter into a contract.
Many parents who I meet with at my law office in the Kanata-Stittsville area of Ottawa are surprised to learn that they are not automatically considered to be their adult child’s legal representative. After December 31, 2018, if the person with a disability does not have the required capacity to sign a Power of Attorney for Property, a costly (and possibly otherwise unnecessary) guardianship application will be necessary before an RDSP can be opened.
If you have a child with a disability, call 613.836.9915 or email [email protected] to make an appointment to meet with me. We will review your unique situation and discuss the special considerations when estate planning for a child with a disability including who can open an RDSP for your child and how to ensure contributions to the RDSP can continue in the event of your incapacity or death.
Reproduction of this blog is permitted if the author is credited. If you have questions or if you would like more information, please call us at 613 836-9915. This blog is not intended to be legal advice but contains general information. Please consult a lawyer or other professional to determine how the information in this blog might apply to you.
Blog posts pre-dated December 1, 2015 were originally published under Neff Law Office Professional Corporation.
