Poverty Awareness in York Region

Hi Tom,Thought you might be interested in the attached.

http://www.landlordconnect.ca/RENTnews/show_full.cfm?id=723

Jane Wedlock
Coordinator
York Region Alliance to End Homelessness

Registered Disability Savings Plan - Draft Legislation

In October 2007 the federal government released draft legislation for the Registered Disability Savings Plan (RDSP) According to the draft legislation the lifetime maximum limit of an RDSP is $200,000 with no annual limit. The plan is expected to become available in April 2008. Under the plan individuals who qualify for the Disability Tax Credit, their parents or legal guardians, will be able to establish an RDSP and will be eligible to receive Disability Savings Grants, and for low income families a Disability Savings bond.

However people need to be aware of the definition of family income. If a disabled person is under age 18, the family income is defined as the parent’s income. As soon as the person reaches age 18, then the disabled person's own family income is used. If that person and their family earn less than $74,000 a year they are eligible for the maximum federal matching grants, 300% on the first $500 of annual contributions and 200% on the next $1,000 of annual contributions. For an annual contribution of $1,500 an additional $3,500 is granted for a total $5,000 contribution. This matching grant is available for 20 years or age 49, of the person with the disability, whichever comes first, for a lifetime limit of $70,000. For low income families making less than $21,000 the government will also offer a savings bond of $1,000 a year for 20 years, or age 49 for the person with the disability whichever come first.

Families with a net family income of less than $20,863, will be eligible for a Canada Disability Savings bond. The federal government will contribute $1,000 a year into a Registered Disability Savings Plan with no contributions from the individual or their family for a lifetime limit of $20,000. The Savings bond is available for 20 years or age 49 of the person with the disability. The RDSP must be converted into an annuity at age 59. The annuity income is calculated on stats Canada’s life expectancy table, plus 3; divided into the total value of the fund. There must be sufficient funds remaining in the plan to refund the total grants and/or bonds contributed to the plan by the federal government on death or maturity.

The major issue still to be determined is whether or not the RDSP assets and withdrawals will impact the Ontario Disability Support Program. The growth and the earnings are tax-deferred and the tax and the grants or bonds are income when the money is paid out to the beneficiary. Anyone can contribute to the plan, and if a plan is opened by a parent the whole community can contribute to the same plan. To view the legislative proposals go to the ministry of finance web site or click on their link.http://www.fin.gc.ca/news07/07-074e.html

LifeTRUST Planning
Committed to improving the lives of people with a disability since 1989
60 Harrison Drive Newmarket On L3Y 4P4
Toll free 1 800 638-7256 fax (905) 836-5458
Email lifetrust@rogers.com
http://www.life-trust.com/