What is a Registered disability savings plan?
Canada is known to be the first country in the world to have a full fledged registered disability savings plan also known in short as RDSP. The registered disability savings plan provides several Canadian families with a facility that will ensure financial security in the future for their people who have disabilities. This initiative is believed to be beneficial to around 500,000 Canadians across the country. This whole venture of registered disability savings plan was incepted by planned lifetime advocacy network also known as the PLAN. The planned lifetime advocacy network is a non profitable organization which essentially researched, proposed and campaigned for registered disability savings plan. After the approval, the PLAN has continually tracked and taken all steps and initiatives to promote and take the plan forward. PLAN basically initiated the project with several researchers and scholars. Various analyses and conclusions were drawn from the research. For securing the future of the families with disable members the present tax assistance was provided.
The policy for social assistance that existed was developed. Various motivation policies were developed for the families and the social barriers in such families were discovered and analyzed. The already developed policies were analyzed and strategies for their reformation were suggested. The demographic details of the prospective people who could be beneficiaries of the registered disability savings plan were obtained. Along with this the various contributors list of the registered disability savings plan was also formulated. A document was prepared as to utilize this scheme to the fullest and bring out the complete potential of the disability saving plan. An individual can be eligible for the disabilities savings plan if he or she qualifies and receives the disability tax credit from the federal government that is issued by the Canadian revenue agency.
A form has to be completed by the concerned person. This from has to be filled by the concerned individual, a guardian or a parent and by a registered doctor or a practitioner. This form, after completion, should be submitted to the Canadian revenue agency, so that they can assess the form. Only after the assessment the Canadian revenue agency will declare if the person is eligible for the reception of disability credit tax or not. In order to be eligible the individual must be either receiving a life sustaining theory, or he or she must be visually challenged, or be unable to perform even day to day activities that a healthy human being can do. The disability must last for at least 12 months or be expected to remain for the next 12 months. If a registered disability savings plan is being set up for a child then it is essential that the child applies for the Canada child tax benefit. This scheme is basically a monthly payment
that is free from tax. This is generally given to the families in order to raise the child and is valid only till the child is 18 years old.