Video: Registered Disability Savings Plan forms, transfers and shortened life expectancy

Transcript

CDSG and CDSB application form

The holder completes the application form for the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB).

If there is more than one holder, each additional holder completes an Annex A – Joint Holder form.

The primary caregiver needs to complete Annex B, Primary Caregiver form if:

• the beneficiary is or was 18 years of age or under at any time in the past 10 years and was eligible for the Disability Tax Credit (DTC) for any of those years

Transfer

If it is for the same beneficiary, the transfer of assets from one RDSP to another RDSP is accepted. A transfer is complete when:

• all funds have been transferred
• the relinquishing (prior RDSP) is closed, and
• the receiving (new RDSP) is registered

Shortened life expectancy

A shortened life expectancy means a medical doctor or a nurse practitioner certifies, in writing, the beneficiary has five years or less to live. A specified year begins when the issuer receives the medical certificate.

In this case, the RDSP holder can choose one of the following options:

• keep the RDSP as is, OR
• designate the RDSP as a Specified Disability Savings Plan (SDSP)

Designating the RDSP as an SDSP allows the holder to withdraw funds from the plan without triggering a repayment obligation.

Knowledge check

Time for a knowledge check. 

When the holder designates the RDSP as an SDSP. 

This signifies that:

1. repayment is mandatory
2. no repayment is necessary

• Answer

  The answer is:

  2. no repayment is necessary