Individuals who are receiving financial support from the Ontario Disability Support Program (ODSP) risk losing their support should they receive an inheritance from a family member. Fortunately, by working with a Financial Advisor who specializes in the special needs market and developing a plan, the risk of losing benefits can be avoided.
The Ministry of Children, Community and Social Services developed various exempt assets which are outlined in their policy directives
* Single individuals are permitted to have $40,000 in cash and other investments. Couples are permitted to have $50,000 is savings and investments;
• Employed individuals are permitted to earn $1,000 before their ODSP income will be affected;
• Individuals can be the beneficiary of a Life Insurance policy with a face value of $100,000, provided that the funds must be used to maintain the health and well-being of the disabled individual;
• Individuals can be the beneficiary of a $100,000 placed in a segregated fund which must be used to maintain the health and well-being of the disabled individual;
• Individuals can be the beneficiary of a Henson “Non-Discretionary” Trust. Funds that are allowed in the trust are unlimited. However, funds must be used for the health and well-being of the disabled individual;
• Individuals who have the Disability Tax Credit (DTC) can be the owner and be the beneficiary of a Registered Disability Savings Plan (RDSP). Funds held inside the RDSP, personal contributions, as well as Grants and bonds from the Government as considered exempts assets.
