Financial Planning and Succession: A Roadmap for Parents

There are several federal and provincial programs in Canada that provide income, health benefits, tax relief, and long-term savings for people with disabilities. These programs are spread across different levels of government, each with its own eligibility rules, application process, and timeline. This section brings them together in one place and walks through them in a sequence that reflects how they connect to one another.

These programs interact and are inter-related. Some are prerequisites for others. Some involve government matching funds that accumulate over time and are worth more the earlier they are started. Some have age-based eligibility windows with specific criteria for when contributions or applications can be made. Understanding how these programs fit together, and the timeframes involved, allows parents to build a financial structure that supports a child with a disability through adulthood.

Each post in this section covers one program. Every post explains what the program is, why it matters, who is eligible, how to apply, when to start, what it costs, and practical considerations for the application and setup process.

The Programs

Disability Tax Credit (DTC) is a federal tax credit that reduces the income tax owed by individual or a supporting family member. It is also the prerequisite for nearly every other federal disability financial program covered here, including the RDSP, the Canada Disability Benefit, and the Child Disability Benefit. Both the DTC and the Child Disability Benefit are covered in the DTC post.

Ontario Disability Support Program (ODSP) is the provincial program that provides monthly income and health benefits beginning at age 18. The ODSP post covers the application process, the shortcut available through Developmental Services Ontario (DSO), the asset and income rules, the difference between boarder and tenant arrangements, and add-on benefits such as the special diet allowance and incontinence supplies.

Registered Disability Savings Plan (RDSP) is a federal long-term savings plan that allows families to save while receiving government matching grants of up to 300% on contributions, plus annual bonds for lower income beneficiaries that require no contribution at all. The RDSP post covers how the matching works, the 10-year withdrawal rule, and how the timing of contributions affects the total amount of government funding available.

Henson Trust is a legal arrangement that allows a parent to leave an inheritance or set aside assets for a child with a disability without affecting their ODSP eligibility. The Henson Trust post covers how the trust works within ODSP’s asset and income rules, the different types of trust structures, how to choose a trustee, and the estate planning steps involved.

Canada Disability Benefit (CDB) is a federal monthly payment of up to $200 for adults with disabilities aged 18 to 64, launched in July 2025. The CDB post covers eligibility, the income thresholds, and what needs to be in place when a child turns 18.