Get started on your Application now!10 Year Rule: The rule that says if a withdrawal is made from an RDSP, including an RDSP being collapsed at death or because of the loss of DTC eligibility, any money received from the government (grant or bond) must be returned to the government. More…
Beneficiary: The person who benefits from the RDSP – also the person who must have the Disability Tax Credit
Canada Disability Savings Bond (CDSB): Government of Canada contributions, which do not require personal contributions, to assist people with lower and middle incomes to save. More…
Canada Disability Savings Grant (CDSG): Government of Canada matching contributions to encourage and assist people in saving. More…
Carry Forward of Grant and Bond Entitlements: People’s entitlement to Grant and Bond amounts will automatically be carried forward to future years. In other words, the Grant and Bond can be received retroactively, with certain constraints. More…
Disability Assistance Payment (DAP): a payment from an RDSP. More…
Disability Tax Credit (DTC): A tax credit to assist offset the costs experienced by people with disabilities living in Canada. People must establish eligibility for the DTC to be able to open an RDSP. More…
Holdback Amount: The total amount that the government contributed to an RDSP in the previous 10 years. Also known as the “10 year rule”. More…
Holder | Account Holder: the individual or individuals who have the responsibility for managing contributions, investments and withdrawals from an RDSP
Legal Representative:
Lifetime Disability Assistance Payment (LDAP): payments made from an RDSP at least annually, which once begun must continue until the beneficiary dies or the RDSP is closed. More…
Registered Disability Savings Plan (RDSP): a Government of Canada program to assist people with disabilities, with assistance from family and friends, to save for their future financial security.
Representation Agreement: A personal planning tool available only in BC that allows a person to designate another person to act as a “legal representative”. A “Rep” Agreement is similar to a Power of Attorney but people are not required to meet a traditional capacity test to designate a Representative.
Rollover to an RDSP: the entire amount in RRSPs and RRIFs become income in the year of a person’s death. This can result in the payment of significant taxes. When funds are rolled from an RRSP or RRIF to the RDSP of a child or grandchild this tax is not payable. More…
Specified Years: When a physician attests that a person is not likely to live more than five years, the subsequent years are known as specified years. The rules governing payments during specified years are different than during non specified years. More…
Trust: A legal tool in which a person (the settler) can entrust an asset to a person (the trustee) to protect, invest, and use for the benefit of a person (the beneficiary). Discretionary (Henson) Trusts are used by families in most provinces to provide support to a relative without reducing their disability income benefits.
