lottery winfall hypothetical

[Scott Young]

just curious if anyone knows how much an odsp receipent can keep if they win a lottery say a 5000 or 10000 scratch ticket
is there a limit?
thanks

[justice4odsp]

Scott,

I believe the limit is $6,000; less if you get gifts or money from other sources as well.

Here is the relevant quote:

An amount up to $6,000 in a 12 month period per member of the benefit unit, in the form of gifts or voluntary payments for any purpose from any source; (this includes monies from trusts, life insurance policies, honorariums and windfalls).

(Source: http://www.mcss.gov.on.ca/en/mcss/programs/social/directives/directives/ODSPDirectives/income_support/5_1_ODSP_ISDirectives.aspx). It's under the heading, "Income Exemptions."

justice4odsp

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[jbkeh]

Windfalls are not income and not deducted. They will, of course,
increase your non-exempt assets and can cause you to be disqualified
if your non-exempt assets are too great. Windfalls should be converted
to exempt assets. (Or spent on silly things like food.)

[Atb]

Actually it all depends but put as simply as possible... generally in
the first month (possibly also the months it was being spent if not
reported immediately & aren't acceptable accepted exemptions) it could
be considered income (unless completely spent properly before the end
of the month) & in following months it becomes an asset so must below
the asset limits. Depending on the person & their worker the monies
can be initially registered as an asset ($5000} or income ($6000/12
month period) depending which is more advantageous. There isn't
clarification as to whether the remaining amounts or initial amounts
must be below the asset/income limitsso that might pose a problem.

The only way not to lose the money or get cut off would be to
immediately spend it on exempt assets or pay off debt. You can't just
spend it frivolously or say give it to a friend/ relative or you'll be
subject to an overpayment, being cut off or even criminal charges.

I'm not advocating this but if you did win, it would almost certainly
be wiser to have a trusted friend or relative claim the prize & share
the money as you need it & purchasing things for you (please keep in
mind if discovered your partner & you would most certainly face
criminal charges from such an act). Purchasing medical/disability
related items, RDSP, a vehicle, home/household needs, pre-paid funeral/
life insurance (with no cash value), etc. is one way to get around the
rules but you would have to keep receipts because you will be audited.
These rules apply to all monetary windfalls/assets not properly
planned for prior to receipt (not always possible).

I actually remember a time while waiting at an ODSP office where a
woman was dealing with a similar issue (I believe it was a coming of
age gift), as far as I could tell she used part to pay off a
registered debt, part to purchases various necessities & the rest to
pay back a personal loan from a relative (so she said but couldn't
prove). The end result was everything but the personal loan was
deducted from the total amount of monies received & the reminder was
treated as income in the month received & an asset for the rest. At
the end she was told she owed an overpayment equal to one months
assistance (for the month it was income) & she would have her benefits
reinstated which would be garnished until the overpayment was repaid
(since she was owed money for the time they had cut her off she would
only have ended up repaying a small amount. I don't know anything that
happened before or after the meeting but I do know the workers seemed
confused & bent over backwards to try to limit the overall cost to the
woman.

This is according to directives 5.1 "Defination and Treatment of
Income", 4.1 "Defination and Treatment of Assets" & my own person
experience.

ATB

[Hope]

I would have no problem losing my ODSP should I win a tidy 30 million
or even 3 million. It would be such a relief for me. I could live
the life I wanted, travel, and just have the freedom to do what I want
when I want.

Money has a way of taking troubles away and 3 million would certainly
do that.

Melanie

[Judy MacLeod]

How would money won in a judgement be treated?

This is not hypothetical. Last eyar I worked for a lawyer. While working for her I was not eligible for OW so recieved absolutely no assistance.

We had our Labour Board Hearing on Thursday over unpaid wages, holiday pay and termination pay. I think the lawyer will be ordered to pay. So sometime in the next 60 days I'm going to get a bit of a windfall, approx $1000.00, not above. Since this is money I've had to chase the lawyer for and was rightfully earned while I was not in receipt of any assistance, will it remain rightfully mine or will I have to declare it?

 

Judy

[Judy MacLeod]

Ditto here!

With the family I have, I would hope to be out of the country before they knew of my win!

JUdy

[deeperblues]

i would think of it like a
refund.....................................................Deeperblue