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Disabilities and Estate Planning

Disabilities and Estate Planning. By Kenneth C. Pope Barrister & Solicitor. Ken Pope. Practicing since 1980. Helps families with special needs deal with tax and disability issues. Specializes in Estate planning for families with disabilities.

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Disabilities and Estate Planning

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  1. Disabilities and Estate Planning By Kenneth C. Pope Barrister & Solicitor

  2. Ken Pope • Practicing since 1980. • Helps families with special needs deal with tax and disability issues. • Specializes in Estate planning for families with disabilities. • Creates Henson Trusts to provide for children and protect benefits. • Deals with problems created when inheritance not left in Trust.

  3. Inheritance and Disabilities • ODSP recipient can lose benefits. • Properly prepared Trust necessary. • Trust can be used in conjunction with government benefits. • Better quality of life.

  4. Statistics • 1 in 8 families in Ontario effected. • Solutions to the inheritance problem are available. • Many families have successfully set up Henson Trusts.

  5. Other Choices • Do nothing and wait. • Leave nothing while you wait. • Leave more to one sibling. • Use the wrong Trust.

  6. Henson Trust • Absolute and unfettered discretion of the Trustee. • Non-vesting provision. • “Even-hand rule” reversal. • “Inter Vivos” (during lifetime) or “Testamentary” (created by Will) Trust.

  7. Origins • Case law precedent is 1000 years old. • Henson Trust also known as a “vow of poverty Trust”. • Originally created to protect families’ assets when member entered the Church.

  8. History of Henson Trust • Unique Trust created for disabled daughter. • 1989 Court of Appeal in Ontario, original trial judgement upheld. • 1993 ministry provided in Policy and Procedures Manual for MCSS staff that Henson Trust is not benefit recipient’s asset.

  9. Planned Giving • Charitable tax receipt can greatly reduce taxes. • More money to charity and less to government. • Can help protect the value of an estate for the beneficiary.

  10. Taxes and Disability Benefits • Disability amount will be $6000 in 2001. • RRSP / RRIF : No tax roll-over to child. • $708 and $930 - Room and board versus rent and supplementary benefits. • Disability tax credits retroactive to 1988.

  11. Exempt Assets • Liquidated assets - $5000 limit issue. • Life insurance - cash value / death benefits. • $100 000 - ODSP regulations. • Exempt status issue. • Offset of income against benefits.

  12. Further Information • Email: kpope@kpopelaw.ca • Phone:1-866-KEN-POPE or 1-613-567-8230 - direct line. • Web site: www.kpopelaw.ca • Online or onsite seminars.

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