Roberto Segado Flashcards
1
Q
RDSP
A
RDSP helps save for the long term needs of the disabled persons
- contributions are not tax deductible but the plan grows tax sheltered
- maximum limit is $200000
- principal withdrawn tax free, any income, grants, bonds is taxed n the beneficiary’s hand
- contribution until the beneficiary’s 49th year
- only the beneficiary can withdraw from the plan
2
Q
Henson Trust
A
- a discretionary testamentary trust
- will still allow the beneficiary to continue to receive government social assistance benefits
- by appointing a corporate trustee this could alleviate the potential for conflicts of interest and abuse
3
Q
Explain the following terms:
CPP Death Benefit
CPP Survivor Benefit
CPP Children Benefit
A
CPP Death Benefit
- amount is equal to 6x the actual retirement pension the individual would have been receiving had they been 65 when the death occurred
- maximum $2500
- taxable
CPP Survivor Benefit
- a monthly benefit made up of a flat rate benefit plus 37.5% of the deceased pension if the spouse is not receiving any other CPP benefits
- retroactive payments for 11 months
CPP Children Benefit
- if both parents contributed to the CPP and the child is under 18 and a dependent
