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<\/p>\nMore than one-fifth of Canadians over the age of 18 are living with disabilities,1 often with special needs
\nwhich can entail significant costs. There is a vast network of supports, programs and tax rules designed to assist Canadians and ease the financial burden that can sometimes accompany a disability, but the opportunities available and how to access them are not always obvious. While not exhaustive, this article
\nhighlights a few federal programs that families affected by disabilities may find useful.<\/p>\n
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Disability Tax Credit (DTC)<\/strong><\/p>\n Franklin\u2019s first step should be to apply for the DTC. This tax credit provides tax relief for qualifying individuals, and more importantly, opens the door to a plethora of other benefits.<\/p>\n <\/p>\n <\/p>\n If his DTC application is approved by the Canada Revenue Agency, Franklin can claim renovation expenses on his tax return for eligible costs incurred to make his home more accessible. He may also be able to claim medical expenses for the wages paid to his personal support worker, however this may limit his ability to claim the DTC amount.<\/p>\n Registered Disability Savings Plans (RDSP)<\/strong><\/p>\n Once Franklin qualifies for the DTC, he can open an RDSP.<\/p>\n \n Investment income earned in an RDSP will not be taxed until it is withdrawn. While Franklin will have to begin withdrawing from his RDSP by the end of the year in which he turns 60, he still has almost two decades to defer taxation on that income using his RDSP. Also, RDSPs are generally excluded from a person\u2019s assets for purposes of determining eligibility for provincial disability supports. As a result, Franklin should be able to accumulate wealth in his RDSP without impacting his access to provincial benefits.<\/p>\n \nHenson Trust<\/strong><\/p>\n Depending upon the province, a person\u2019s assets, means or a combination of both are used as thresholds It is a good idea for families to revisit their wills and estate plans when a family member is affected by More than one-fifth of Canadians over the age of 18 are living with disabilities,1 often with special needs which can entail significant costs. There is a vast network of supports, programs and tax rules designed to assist Canadians and ease the financial burden that can sometimes accompany a disability, but the opportunities available and how […]<\/p>\n","protected":false},"author":144,"featured_media":405,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","footnotes":""},"categories":[13],"tags":[],"class_list":["post-748","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth-planning"],"yoast_head":"\n\n
\ndaily living, i.e. speaking, hearing, walking, feeding, dressing, bowel\/bladder elimination, and mental
\nfunctions for everyday life. Where the cumulative effect of two or more impairments leads to a
\nmarked restriction in the ability to perform such activities, the individual may qualify for the DTC.<\/li>\n<\/ul>\n![\"\"](\"https:\/\/advisor.wellington-altus.ca\/klugeadvisorygroup\/wp-content\/uploads\/sites\/132\/2023\/04\/Disabilitiees-2-300x68.png\")
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\nto access disability supports. If Franklin and Eleanor are concerned that their assets or income will be too high for Franklin to continue to receive such supports, they may
\nconsider whether a Henson trust is appropriate for them.
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\na disability. Franklin\u2019s parents are in the process of updating their wills. Estate planning tools that can help transfer wealth to an heir with a disability, like Franklin, include:<\/p>\n\n
\nfor the DTC. Contrary to most trusts, income in the QDT is taxed at graduated rates if an annual
\nelection is made.<\/li>\n
\nincome taxed in the hands of a DTC-eligible beneficiary2 at their marginal tax rates. While the
\nelection allows for a favourable tax treatment, the trust income is not paid out and generally
\ndoes not impact provincial supports for the preferred beneficiary. PBE\u2019s are available both for
\ntestamentary and inter vivos trusts.<\/li>\n![\"\"](\"https:\/\/advisor.wellington-altus.ca\/klugeadvisorygroup\/wp-content\/uploads\/sites\/132\/2023\/04\/Disabilitiees-5-300x208.png\")
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