"As long as the world shall last there will be wrongs, and if no man objected
and no man rebelled, those wrongs would last forever
~Clarence Darrow

Monday, May 10, 2010

Practical Applications - Payments from the RDSP

I know that posts have been light (to non-existent) around here lately but I hope to remedy that soon. My excuses (such as they are) are my health over the last few months and the fact that I am still (at least semi) diligently working away on the Guardianship Kit. Which is nearing completion. Honest.

I can throw you this tidbit though (thank goodness for Jack and the rest of the crew at PLAN) - when and how payments can be made out of a RDSP can be a very confusing subject. In fact for many, including me, it's very tempting just to know there's a formula involved and skip the rest of it for now, deal with it when the time comes.

But knowledge is power. And in this case, it is important to know the limits of the RDSP. Don't get me wrong - I believe it is a very good vehicle for the disability community. But it can't be the only tool in your financial tool box. You really need to look at using the RDSP in conjunction with other tools (such as the Henson Trust, for example) in order to provide for the future.

But here's what I wanted to share with you - the RDSP blog has just posted a chart explaining how and when payments can be made out of the RDSP.

And please don't forget one of the most important points (which is not covered in this table) -just how limiting the formula is when it comes to the dollar amount of any lump sum payments taken from the Plan.

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