Sean Leduc

The Inclusion Strategist

The Inclusion Strategist

As an Inclusion Strategist, a financial professional focuses on helping individuals and families with disabilities navigate the complex world of financial planning. This role is about creating a comprehensive strategy that ensures financial security while preserving eligibility for essential government benefits.

1. Financial Planning for People and Families with Disabilities

A financial plan for a person with a disability is not a “one-size-fits-all” solution. It requires a detailed, personalized approach that considers the individual’s specific needs, the nature of their disability, and their long-term goals. The goal is to build a plan that provides financial stability and support for the lifetime of the person with a disability, while also providing peace of mind for their family. This includes:

  • Understanding Government Benefits: A core component is understanding the various government programs available, such as the Ontario Disability Support Program (ODSP), and how to structure finances to maintain eligibility.
  • Creating a Budget: Developing a realistic budget that accounts for both essential living expenses and disability-related costs (e.g., therapies, medical equipment, support workers).
  • Long-Term Financial Goals: Helping families set up savings and investment strategies to meet long-term needs, such as a down payment for an accessible home, future care costs, or retirement.

2. The Registered Disability Savings Plan (RDSP)

The RDSP is a cornerstone of financial planning for many people with disabilities in Canada. It’s a powerful tool that an Inclusion Strategist will discuss in detail:

  • Tax-Deferred Growth: Contributions to an RDSP are not tax-deductible, but the investment income earned within the plan grows tax-deferred.
  • Government Contributions: The most significant feature is the potential for government contributions through the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB).
  • Canada Disability Savings Grant (CDSG): The government provides a matching grant based on contributions and family income, up to a lifetime maximum of $70,000. For example, for every dollar you contribute, the government might match it with up to three dollars, depending on the beneficiary’s family income.
  • Canada Disability Savings Bond (CDSB): For low-income families, the government can contribute up to $1,000 per year, with a lifetime maximum of $20,000, without any personal contributions being required.
  • Eligibility: To be eligible for an RDSP, a person must be a Canadian resident under age 60 and be approved for the Disability Tax Credit (DTC).

3. ODSP and the Disability Tax Credit (DTC)

It is a common misconception that having the Disability Tax Credit (DTC) automatically qualifies someone for the Ontario Disability Support Program (ODSP). An Inclusion Strategist clarifies this distinction:

  • ODSP Eligibility: ODSP is a provincial program in Ontario that provides financial assistance and benefits to people with disabilities who are in financial need. To be eligible, an individual must meet both financial and medical criteria.
  • The Disability Tax Credit (DTC): The DTC is a non-refundable tax credit from the federal government (Canada Revenue Agency). While being eligible for the DTC is a prerequisite for opening an RDSP, it does not guarantee eligibility for ODSP, which has its own medical and financial tests.

4. Personal Injury Settlements and Financial Eligibility

An Inclusion Strategist works with individuals who have received personal injury settlements to ensure these funds are managed effectively without jeopardizing eligibility for government programs. This involves strategies to protect the settlement from being counted as an asset or income by ODSP.

  • Exemptions: Significant portions of personal injury settlements, such as those for pain and suffering or future medical care, are fully exempt from consideration as assets.
  • Structured Settlements and Trusts: Placing settlement funds in a structured settlement or a trust can protect them.
  • Structured Settlements: These provide a stream of income while remaining exempt from ODSP income rules, up to the amount of the original exempt award.
  • Trusts: Funds held in a trust are managed by a trustee for the individual, protecting them from being considered personal assets.

5. Henson Trusts and Estate Planning

This is a critical conversation for families of a person with a disability. An Inclusion Strategist emphasizes the importance of a well-crafted estate plan, including:

  • The Henson Trust: A discretionary trust designed to hold assets for a person with a disability without affecting government benefits. The trustee has full discretion on how and when to use the funds.
  • Why an Estate Plan is Essential: A proper estate plan ensures a secure future. Without it, a person with a disability could inherit a lump sum directly, disqualifying them from government benefits. An Inclusion Strategist helps families create a plan that protects the inheritance and enhances the life of their loved one.