Planning for the Future – Supporting Adult Children with Disabilities
It is never too early to begin planning for your child’s future. As parents age, concerns about their child’s financial stability, security, legal protections and care become increasingly important. The CLKD Family Support team has gathered some resources and information that can help families to plan and prepare for their child’s future. The information in this guide is subject to change at any time due to legislation, program or policy updates. Please follow the links for the most up to date and accurate information.
Saving for the Future with an RDSP
Registered Disability Savings Plan The Registered Disability Savings Plan (RDSP) is a long-term savings plan designed to benefit individuals with a disability. The funds can be invested on a tax-deferred basis – tax is only paid on the income that is actually taken out of the RDSP. Any contribution to an RDSP has no impact on eligibility for other federal benefits such as the Canada Child Benefit, GST credits, Old Age Security payments and Employment Insurance. The overall lifetime limit is $200,000 and contributions can be made until the end of the year in which the beneficiary turns 59. Eligibility: Individuals must be eligible for the Disability Tax Credit in order to become the Beneficiary.
Canada Disability Savings Grant Government of Canada will contribute to an RDSP through matching grants of 300%, 200% or 100% based on the beneficiary’s adjusted family income and the amount contributed. An RDSP can get a maximum of $3500 in matching grants in one year and a lifetime total of up to $70,000.
Canada Disability Savings Bond The Government of Canada will contribute up to $1000 per year into an RDSP for low-income Canadians with disabilities. No contribution is required in order to receive the bond and the lifetime bond limit is $20,000. The amount that is contributed by the government is based on the beneficiary’s adjusted family income.
Inspiring Possibilities Estate Planning Guide Community Living Ontario and the Law Foundation of Ontario have worked together to create an incredibly comprehensive and plain-language guide to Estate Planning. Written by legal, tax and accounting professionals who specialize and are dedicated to serving individuals and families with disabilities, the Inspiring Possibilities Estate Planning Guide explains the complex web of resources, funding, tax, trusts and estate planning options that families can use to secure quality of life for their loved one with a disability. Highlights: includes information on will planning, trusts, Power of Attorney for Property, Power of Attorney for Personal Care, RDSP’s and more. The guide was first published in 2016 but has been continuity updated to reflect legislative and tax changes. To ensure you receive the most recent version, you can request a free copy on the Community Living Ontario website.
Developmental Services Ontario
Once an individual turns 18, they are able to apply to Development Services Ontario (DSO), which coordinates core services for adults with developmental disabilities living in Ontario. The DSO, funded by the Ministry of Children and Community Services (MCSS) maintains provincial service waitlists and prioritizes individuals for service based on needs.
Funded Services Community Living Kincardine & District provides several funded services that are available, based on availability, to individuals who qualify for DSO service. These include:
Group homes and 24 hour living supports
Supported independent living
Community Participation Supports
To apply: To go on the waitlist for these services, individuals must complete the DSO application process. The application may be submitted prior to an individual’s 18th birthday.
PASSPORT DSO also administers an individualized funding program called PASSPORT for adults with developmental disabilities. Individuals and families have the option to self-administer these funds or receive support through an agency. PASSPORT funds can be used to access community programs, develop work, volunteer and daily life skills or hire a personal support worker. To apply: Individuals are automatically added to the PASSPORT funding waitlist once they complete the DSO application process. Funding: Annual amount, managed by the individual, their family or CLKD
Receiving funds: Individuals or families are required to purchase items or arrange support workers and submit receipts for reimbursement.
Income and Employment Supports
Ontario Disability Support Program (ODSP) ODSP offers financial assistance to help adults with disabilities pay for living expenses as well as access prescription drugs, dental care and vision care. Application: The application process looks at financial need as well as disability status. Funding: Funding is paid monthly; individual rates may vary based on family size, financial need, employment income and shelter costs. Receiving funds: Payments are made directly to the individual with a disability.
ODSP Employment Supports Community Living Kincardine & District provides ODSP Employment Supports through our JobsWork program. Individuals who are 16 years of age and older who have a disability can access this program. Supports are designed to meet the needs of individuals and may include preparing for work, assistance with finding and applying for jobs, on the job coaching, skill enhancement and resources to start a business. Cost: There is no cost to participants to participate in this program. Individuals do not need to be receiving ODSP to apply. Contact: Aimee Kim, JobsWork. firstname.lastname@example.org
Tax Credits for Adults with Disabilities and their Caregivers
Disability Tax Credit A non-refundable tax credit that can be claimed by an individual with a disability or their supporting person (parents/guardians). The basic disability amount is $8,576. NecessaryDocumentation: The Disability Tax Credit can be claimed once the CRA has approved Form T2201 – Disability Tax Credit Certificate. This form must be filled out by a medical practitioner. Information on how to claim the disability amount for a dependent, including an adult dependent: T2201 – Disability Tax Credit Certificate
Canada Workers Benefit Canada Workers Benefit is a refundable tax credit for low-income individuals and families who earned income from employment or businesses. The CWB consists of a basic amount and a disability supplement. To claim the disability supplement, an individual needs to be eligible for the Disability Tax Credit and have employment or business income from the past year. Necessary Documentation: An individual may receive the disability supplement if they are eligible for the Disability Tax Credit and have an approved Form T2201 – Disability Tax Credit Certificate.