Ever since the announcement of the recent Federal Budget, I’ve been keeping a close eye on the latest news to ensure that more families are fully informed about its potential impact. If you recall, dental care, reducing inflation, investing in a clean economy, and strengthening the working middle class are the primary focuses of the 2023 budget.
Since I work with many families with the Registered Disability Savings Plan (RDSP), there is an update specifically related to that and I’d love to share it with you.
So in my line of business, I have firsthand experience working with individuals with disabilities and each have their unique financial challenges. While some disabled individuals are high functioning and can manage their own finances, others require support to manage their funds.
In the latter case, a legal representative would be required to set up the RDSP for the disabled adult beneficiary. However, such legal process could involve a considerable amount of time and expense and may have significant repercussions for the individual.
Therefore, in 2012, the federal government introduced a temporary measure to allow Qualifying Family Members (QFM) to become plan holders of the RDSP for an adult who might not be able to otherwise enter into a contract. This allows individuals who might not be contractually competent and who do not have a legal representative can still benefit from RDSPs.
Under the current provision, the QFM can be the parent, spouse, or common-law partner of the disabled beneficiary. However, the provision was set to expire in December 2023, leaving many families uncertain about their financial future.
Thankfully, the government has extended this provision until December 2026. This is fantastic news for families and individuals who rely on this support to manage their finances effectively. What’s more, the government is considering expanding the provision to include adult siblings of an RDSP beneficiary as potential QFMs.
I’m happy to see such positive steps being taken towards more options and greater financial stability to the disability community.
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source:
- Canada.ca (source)