You are currently browsing the monthly archive for November 2007.

Minister Flaherty tabled legislation to create the Registered Disability Savings Plan on November 21st. The text of the “first reading version” of the bill can be accessed from this site: http://www.parl.gc.ca/LEGISINFO/index.asp?Language=E&query=5334&List=toc. Note that the RDSP is only part of a larger Bill. You can also see the status of the Bill from this site.

The explanitory notes that accompany the bill were also released. They can be accessed from the Finance Canada website: http://www.fin.gc.ca/drleg/DregNov07_e.pdf. Note that only pages 26 to 48 pertain to the RDSP.

1) When will people actually be able to setup an RDSP and how much lead up time will people have to get the necessary paper work in place?

Our most recent meetings in Ottawa suggest that the necessary legislation will be passed this fall and regulations early in 2008. The Federal Government is moving very quickly to implement and hurdles should all be passed by mid 2008.

2)What, if any, sort of test will people have to summit to show that they are spending monies withdrawn from the RDSP in the best interest of the individual whose name the RDSP has been setup in?

The draft legislation does not provide for regulation of expenditures. If the beneficiary or someone else complains, there is a process for resolving the complaint. It is possible that people will need to report to the provincial program that provides Disability Assistance.

3)Where are negotiations with the provincial (in my case the BC)government at regarding the RDSP and provincial income support?

We have had positive discussions with several provincial governments, however, they are not likely to respond formally until the legislation is passed.

4)Has anyone talked about weather donations made to a non profit groups (i.e. micro boards) with a charity number, which are then placed in a RDSP would be considered to be tax deductible?

This is a good question. Generally, supports to people with disabilities are seen as a charitable cause. Charitable donations, however, cannot be directed to specific individuals or they cease to be chartiable. Therefore, contributions to a pool that provided funds to a group of people with disabilities should be permissible. We will seek a legal opinion on this question.

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