In Months
Experiencing a serious illness 9
Reaching a certain age 9.5
Death of a family member/friend 10
Birth of a child 10.5
Marriage 13.5
Purchasing a home 15
Natural disaster/national emergency 20
(source USA Today, Oct. 20, 2011)
Average time Before purchasing life insurance after…
22 Oct 2011 at 19:32
Brian Poncelet, CFP
Disabilities and Financial Planning, Disability News, Uncategorized
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What comes first Disability, Death or Taxes?
What comes first Disability, Death or Taxes?
Here is the answer, disability…then Taxes then Death!
When reviewing the Income Tax Act one finds a rule, which essentially says that the taxpayer is “deemed to have disposed”, of everything they own just prior to death. Therefore, the question is answered, the taxman always comes first!
If one talks to us before they become disabled such as a stroke, cancer or heart attack they could get up to $2,000,000 tax free! Call us now!
Rheumatiod Arthritis (RA) and the disability tax credit
26 Mar 2011 at 11:15
Brian Poncelet, CFP
Disabilities and Financial Planning, Disability News, Disability Tax Credit, Uncategorized
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Rheumatoid arthritis (RA) is a life-altering condition that affects about 300,000 Canadians. Unlike osteoarthritis (OA, the wear and tear form of arthritis that is more common in older people), RA can start at any age and often develops inpeople’s 30’s and 40’s. The diease can severely limit physical activities and cause distressing levels of pain,forcing many people to stop working and others to sacrifice their personal lives.
Often misunderstood disease, RA isn’t consistently treated with the urgency it deserves. RA symptoms vary widely from person to person. Deformities may develop over time as the inflammatory process damages the joints and supporting structures.
Knowing the odds
Gender: Women are three times more likely to develop RA than men.
Age: Often develops in the early mid-life years
Smoking: You can guess this one. Smoking increases the odds of developing rheumatiod arthritis
Source: Roche
Taxes: You may need to see if you or a loved one qualifies for the disability tax credit. Also, in some cases some types of disability insurance coverage may be possible. The best plan however is to get disability cocoverage while you are still healthy!
MS and the disability tax credit
05 Mar 2011 at 13:51
Brian Poncelet, CFP
Disability News, Disability Tax Credit, Uncategorized
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There is no known cure for MS. Treatments attempt to return function after an attack, prevent new attacks, and prevent disability. MS medications can have adverse effects or be poorly tolerated, and many patients pursue alternative treatments, despite the lack of supporting scientific study. The prognosis is difficult to predict; it depends on the subtype of the disease, the individual patient’s disease characteristics, the initial symptoms and the degree of disability the person experiences as time advances. Life expectancy of patients is 5 to 10 years lower than that of the unaffected population.
The biggest problem with Multiple sclerosis, is the different degrees it affects people. Even if one does not qualify for the disability tax credit there is still other tax credits you can still use to reduce your taxes that is often missed. Feel free to contact us http://www.disability-tax-credit.ca/.Also, another site to check out of course (though limited in any tax advice) is http://mssociety.ca/en/information/taxTips.htm
Disability Tax Credit
“The Disability Tax Credit is confusing and under-utilized by taxpayers for one simple reason – it is named incorrectly”, states Brian. “The Disability Tax Credit, by virtue of its name alone, leaves the credit on the table and not claimed by individuals who are in fact entitled to the claim.” For this reason alone, the credit should be referred to as the Restricted Quality of Life tax credit.”
How lack of financial advice hurts, and waiting times for medical help seems to be getting worse in Northern Ontario
21 Feb 2011 at 16:21
Brian Poncelet, CFP
Disabilities and Financial Planning, Disability News, Disability Tax Credit, Registered Disability Savings Plan (RDSP), Uncategorized
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We had a call from a mother who has a daughter (age 21). To get an evaluation she was told it would take 10 months or more to see a physiatrist to see see if her daughter has Obsessive Compulsive Disorder (they feel she may have had since 8!). If she can get the disability tax credit for her daughter, she can get the RDSP. Waiting almost a year to get some tests done does not seem fair!
There is only two banks in her town, TD and Scotia Bank the family’s debt is not properly covered by life insurance dispite the fact they do business with both banks. Since the banks do not offer any tax advice more money is lost as well.
If something happens to the breadwinner in the family how does the mother and daughter get looked after? Who is giving tax advice or financial advice here?
Why relying on your bank or tax preparer will cost ten of thousands of dollars for younger people who qualify for the Disability tax credit.
29 Jan 2011 at 20:36
Brian Poncelet, CFP
Disabilities and Financial Planning, Disability News, Disability Tax Credit, Registered Disability Savings Plan (RDSP), Uncategorized
There is always changes to rules involving taxes. Here is an excellent example: many people at the bank are not likely to be aware of and tax preparers will not know if one’s child has an RDSP or RRSP holdings.So at time of death not having a financial planner who is aware of taxes and investments (like the RDSP) will cost the beneficary in terms of a lower lifestyle!!The existing rules governing the rollover or RRSP’s on death will be modified so as to allow the funds of a deased taxpayer to be transferred to the RDSP (registered disability savings plan) of a child or grandchild who, who at time of death, was fiancially dependent on the deceased by reason of infirmity. The new rules will take effect for deaths after March 3, 2010. Here is an example taken form CRA’s website regarding this important topic.
Under the terms of her deceased husband’s will, Nancy received $150,000 that her deceased husband’s estate had received from his RRSP in 2008. She decided to rollover $100,000 of this amount into her own RRSP and she kept the remainder. She included the $150,000 in income for 2008 and claimed a deduction for the $100,000 that was rolled into her RRSP.
In August of 2011, Nancy contributes $50,000 of her own funds and rolls over $100,000 from her RRSP into her son Joey’s RDSP, of which she is the holder. At the time of his father’s death, Joey was financially dependent, by reason of physical or mental infirmity, on his father.
Provided that Nancy elects (as the RDSP holder and as the individual eligible to claim the deduction), she will be able to claim a deduction of:
•$50,000 in 2008, to offset the $50,000 income inclusion; and
•$100,000 in 2011, to offset the $100,000 income inclusion resulting from her RRSP withdrawal.
Anyone who has an RDSP with a bank (since no mutual fund company or insurance company is currently offering an RDSP) needs to have a written plan which deals with the changes which seems to be happening every year. Do not expect the bank to do this or the accountant or the like, to be aware of your financial holdings…hence why you need a financial planner who is on top of this!
Still no RDSPs from Investors Group, Primerica and (many more) are losing up to $500,000 for their clients or more, in one’s lifetime!
22 Jan 2011 at 14:56
Brian Poncelet, CFP
Disabilities and Financial Planning, Disability News, Disability Tax Credit, Registered Disability Savings Plan (RDSP), Uncategorized
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The clients of Primerica, or Investors Group (and others) who have childern or adults who qualify for the disability tax credit, children or young adults who have Autism,Multiple sclerosis,•Feeding
(can’t feed themselves or takes significantly longer),
Epilepsy,•Walking
(can’t walk 100 metres or takes significantly longer),•Vision
(Blind in BOTH eyes, 20/200, 20 degrees field of vision) and many other problems not listed here…
http://www.disability-tax-credit.ca/disabilities-qualify.html
Are missing over $90,000 of government grants. Over a life time this can be at least $500,000 in lost money for the parents and children! Why lose money that is rightfully yours? Call us today! Remember you can not have a true “plan” that omits people who need help without reviewing taxes, this means missing out on free money from the government! Find out how to turn $20,000 into $164,000 in twenty years (if between 18 and 28) assuming a 3% rate of return. Call for details.
Do you qualify for the Disability Tax Credit? (things to review)
20 Jan 2011 at 09:38
Brian Poncelet, CFP
Disability News, Disability Tax Credit, Registered Disability Savings Plan (RDSP), Uncategorized
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Transfer to spouseIf you cannot use all of your Disability Tax Credit on your return, you may be able to transfer the unused amount to a spouse or adult child.
Retroactive claimsIf you did not realize you were eligible for the credit when you filed your return, you can request adjustments for up to 10 years under the CRA’s Taxpayer Relief Provisions. You will need to file a Adjustment form for each year you need to amend.
Multiple impairmentsThe disability definition has been expanded to allow for the cumulative effect of multiple impairments that individually would not be severe enough to qualify. For example, a taxpayer with multiple sclerosis who constantly experiences fatigue, depression and balance problems may qualify.
This one key point is often missed by Doctors when signing forms! i
Source: Investment Executive Jan 2011.
Canadians with disabilities not taking advantage of RDSPs: survey
22 Dec 2010 at 11:27
Brian Poncelet, CFP
Disabilities and Financial Planning, Disability News, Registered Disability Savings Plan (RDSP), Uncategorized
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Source: Investment Executive
December 21, 2010
Only one in 10 Canadians with a disability, or those with a family member with a disability, are knowledgeable about the Registered Disability Savings Plan (RDSP) and its benefits, with 44% having never heard of it, according to survey results released Tuesday by Bank of Montreal.
Introduced by Finance Minister Jim Flaherty in the 2007 federal budget, RDSPs are designed to provide financial security for individuals with disabilities and combine the advantages of tax deferred investment growth with the opportunity to receive government subsidies.
Despite the benefits that RDSPs provide, only 5% of those surveyed actually hold an RDSP. While the majority of survey respondents shared a lack of awareness of RDSPs, once given a brief description, more than half (55%) were interested in opening up an RDSP account.
“The financial costs associated with having, or caring for someone, with a disability can often be overwhelming and challenging, making it critical that work be done to raise awareness of this program which is designed to provide critical financial support,” says David Sharone, product manager, registered plans and solutions, BMO Financial Group. “When you consider the significant savings a beneficiary can accumulate through the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB), along with tax-deferred investment growth, RDSPs are a powerful investment tool that can offer long-term financial security.”
Other key findings from the survey include:
> of those who have heard of RDSPs, only 6% know that contributions are tax sheltered;
> 44% of respondents feel that RDSPs are “too good to be true” and there is probably a catch involved, despite the benefits they provide; and
> 75% of respondents indicated that they would like to know more about the RDSP program.
“As the first bank to introduce RDSPs, we feel a special responsibility to educate Canadians about the advantages they provide,” says Sharone. “The survey results clearly demonstrate that Canadians with disabilities are not aware of the assistance and financial relief available through RDSPs. We want to let them know that this program can be extremely helpful in providing critical financial support for those with disabilities.”
The survey was completed with 501 Canadian adults who have a disability or have a family member with a disability, and was conducted using Leger Marketing’s Web panel between September 10 and 19