Providing for Disabled Beneficiaries - PART II
This week, I am discussing particular considerations to be kept in mind when planning an estate involving a disabled beneficiary.
As indicated yesterday, testators must keep in mind the effect that a bequest to a disabled beneficiary may have on the social benefits that the disabled beneficiary may be receiving.
In Ontario, disabled individuals may be entitled to receive Ontario Disability Support Program benefits. To qualify, the disabled individual must meet certain medical and financial qualifications.
Medically, under the Ontario Disability Support Program Act, a person is considered to have a disability if:
• He or she suffers from a continuous or recurrent physical or mental impairment;• The impairment is substantial in nature;
• The impairment is expected to last a year or more;
• The impairment’s direct and cumulative effect on the person’s ability to attend to his or her personal care, function in the community and function in the workplace, results in a substantial restriction in on or more of these activities of daily living; and
• The impairment, duration and restriction on activities of daily living must be verified by a person with prescribed qualifications and is typically a member of a health profession that has been approved by the Director of the ODSP.
Financially, income support is available only to Ontario residents who:
• Have expenses and other budgetary needs that exceed their income;
• Whose assets do not exceed a base of $5,000 for a single person, plus $2,500 for a spouse and $500 for every non-spouse dependant;
• Who provide all required information to determine eligibility; and
• Meet any other prescribed eligibility conditions.
Once qualified, the disabled individual, and their spouse and dependants in certain circumstances, are entitled to support.
Once qualified, the disabled individual must ensure that their assets, and income do not exceed the prescribed thresholds in order to maintain benefits. The disabled individual is entitled to receive “income” from all sources up to $5,000 during any 12 month period. An effective estate plan that seeks to maximize benefits to the disabled individual must take these thresholds into account. Tomorrow, I will discuss how this may be achieved.
Have a great day.
Paul Trudelle
