When a parent has a child with a disability, their long-term financial independence may not be the first thing on their minds.
But if that child needs to rely on the Ontario Disability Support Program (ODSP) as they get older, they should have something in place to supplement those funds, and replace them once they reach age 65 and payments end.
With this in mind, Dave Copeland, an independent financial advisor based in Sudbury, will host a free estate planning seminar at Independent Living Sudbury/Manitoulin, located at 125 Durham Street, on Sept. 14.
“If a person on ODSP inherits money, they can lose their benefits,” Copeland said. “There are strategies they can put in place in order to keep those benefits.”
Copeland will inform anyone interested in attending the session about the various strategies a person can use to maintain and supplement their ODSP funds.
A person cannot have more than $5,000 in assets, for instance, to qualify for ODSP benefits. But there are number of exempt assets that don't count towards that $5,000.
A person's primary residence and vehicle, for example, are exempt.
There are several plans or trusts a person on ODSP can access to supplement their savings or make sure they can support themselves past age 65.
One such savings strategy Copeland describes in his seminar is called a Henson trust.
A Henson trust protects assets – usually an inheritance – of a disabled person while maintaining their ability to collect government benefits and entitlements.
The key provision of a Henson trust is that the person's trustee has absolute discretion over trust payments for the beneficiary.
There is no limit to the funds that can be held in a Henson trust, and it can be funded through an inheritance or a life insurance policy.
If you are interested in learning about Henson trusts and other strategies to maintain benefits and invest for the future, you can register for the seminar by calling Copeland at 705-222-0805 or emailing him at [email protected].
The seminar is scheduled to start at 7 p.m.
