Wednesday, December 24, 2008

Update on RDSPs in Canada

Government finally makes RDSPs available- BMO only bank to offer it
After a year of reading about and being promised that RDSPs (Registered Disability Savings Plan) would be available in 2008, the government finally made RDSPs available. We had the choice (is it a choice if there is only one option? I think not) of going with BMO. The RDSPs became available on December 22, 2008 and you have to contribute before December 31, 2008 in order to get the grant for 2008. What this means is that we had to go to BMO, set up a profile, speak to staff who had no idea what they were doing and actually were incorrect in that they did not take Gavin's info which means he has to go back today. Then we had to call a 1-800 number (the same number that all Canadians were using and no, they did not have extra staff on hand to handle the extra calls) and wait 80 minutes to talk to an investment agent. I have to say, that when we did finally get through, the person was knowledgeable about RDSPs. So that was helpful. He emailed us the forms, we filled them out and faxed them today. According to the guy we spoke with, as long as BMO gets the paperwork by December 31, we will get the grant money. It does not matter if the actual RDSP is not set up until after the New Year.

They don't seem to have some kinks worked out quite yet. When I asked how we will know that they got the fax, his response was, "We haven't figure out how we will be contacting clients." He said we could call again and wait in line for another 60-90 minutes to speak with someone but they may not know because some of the accounts will not be in the system until after the New Year. When I asked how we can make deposits in the future, he recommended calling and giving the account number and password. On the forms we set the password but how can we know the account number if they don't contact us? His response, "We haven't figured that part out yet."

And so, in blind faith we have faxed the forms. Hopefully all goes well and Zoe will have an RDSP opened in her name.

Good News from Ontario
The good news is that Ontario has declared that a person receiving money from an RDSP will still be eligible for full disability support. We are setting up our assets in what is called a "Hensen Trust" which also does not affect disability payments. By leaving Zoe our money in these ways, she will still be able to get support from the government as an adult and use our money for the extra things like new clothes, travelling, hockey tickets, whatever she wants. If we did not set up this special trust and just left the money to Zoe, she would be disqualified from getting any public supports. It gets complicated when you are trying to think about all of these future things for your child who will be disabled and most likely unable to support themselves. I think Gavin and I are both relieved that the Hensen Trust will be finalized soon and that the RDSP has started.

Where to go for more info about RDSPs
If you are interested in setting up an RDSP for your child, go to http://www.rdsp.com/
Also, I have the forms from BMO, so if you don't want to wait in line on the phone, I can email them to you. Just let me know.

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