How to obtain the full ODSP amount and why ODSP does not disclose the steps.
Many questions about ODSP
Bill Higgs
justice4odsp
First of all, this statement from the caseworker with rules about having
to eat separately is utterly ridiculous. I know the workers say that
because I was given the same line about how to live with someone else as
well. It was even more ridiculous than this. I was told to get separate
names on the lease, buy my own fridge, stove, and phone line, and then
to eat at a different time than the person I was staying with. Their
advice was totally insane. Now that I'm a little wiser at sniffing out
misinformation, I would suggest this.
They want proof that you are living together, but are independent of one
another. If you can keep receipts to prove you are buying your share of
the groceries, paying bills, etc. then there is nothing they can do to
stop people from eating together.
People have a right to earn a living, find cost economies, etc. That's
why I don't understanding why the workers, who are spouting this
misinformation, have not been reprimanded for saying it. It's
discrimination and poor bashing at its worst.
If you can, take a recorder with you next time you go and ask the same
questions, or alternatively ask them to provide written proof that this
directive exists.
justice4odsp
Mr. Smith
for valid reasons and are indeed reasonable. Really, it's more about
you trying to manipulate the system to get more money; it's certainly
not for legitimate reasons, that much is obvious. Don't think your
ODSP worker and his or her manager don't see it for what it is. Its
this kind of gaming for extra benefits that gives everyone on ODSP
such a bad reputation and makes it so much harder for people with real
and legitimate needs.
Graeme Treeby
Maximizing ODSP Benefits Clarified
Recently, our office has received quite a number of requests for information regarding the maximization of ODSP benefits for people who are living in the family home. It seems that some people are receiving information indicating that they can increase their child=s entitlement from $805 per month to $1053 by simply entering into a rental agreement in which the parents become the landlord and the child becomes the renter. Under a rental arrangement, the maximum benefit could be increased to $1053. Further, people are under the impression that the ODSP requirement for this to work is that their child need only be Acapable@ of purchasing his or her own food and be Acapable@ of cooking their meals, even with some assistance or on an infrequent basis. This sounds too good to be true and in many cases, it is not. When we explored the issue in depth with the Policies Branch of the ODSP, we discovered several important things.
In a letter from Debbie Moretta, Director, Ontario Disability Support Program, the following information was revealed:
ATo be considered a renter, a recipient does not necessarily need to be living in self-contained quarters, but must purchase and prepare his/her own food. The landlord is not involved, directly or indirectly, in facilitating the provision of meals to the recipient. The recipient is solely and completely responsible for obtaining meals and can make choices as to how meals are obtained/prepared. (emphasis added) If the landlord is responsible for providing the food, the recipient is considered a border.@
Furthermore, under Directive 6.3 of the Ontario Disability Support Program Policy Directives, it states that: AIf the recipient purchases and prepares food separately for himself/herself and his/her dependants, then the recipient is in a rental situation.@
What this all means is that if we as parents prepare the meals for our family and our family member with a disability sits with us and enjoys those meals, then we are not in an rental arrangement as defined by the ODSP regulations and our son or daughter is not entitled to the increased ODSP amounts. If you are considering entering into one of these rental agreements, proceed with caution. Be certain that your son or daughter fits into the category of renter since the ODSP can and will demand that overpayments of benefits be reimbursed and in some cases may initiate fraud investigations.
For further information on this or any other issue, please contact us at: The ASpecial Needs@ Planning Group, 70 Ivy Crescent, Stouffville, Ontario. L4A 5A9 or email at: graeme...@sympatico.ca or call 905 640-8285 or visit us on the Web at: www.specialneedsplanning.ca
The Special Needs Planning Group
70 Ivy Crescent
Stouffville, ON L4A 5A9
www.specialneedsplanning.ca
Phone/Fax 905 640-8285
----- Original Message -----Sent: Saturday, July 09, 2011 7:48 AMSubject: [odspfireside: 38007 ] How to obtain the full ODSP amount and why ODSP does not disclose the steps.Hi all,
" Recently, she found out that if there is a lease agreement between the two sisters she would be able to submit documentation to ODSP and they would then adjust the amount. now there were some restrictions.... The sister needs to eat at sperate times and make most of her own meals with supervision... This seemed odd to us because it is ridiculous at best. "
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Atb
a recipient must be responsible for their own meals & have a lease but
that doesn't prevent the family from eating together as much as they
desire nor does it prohibit the family member who is playing landlord
from occasionally providing a meal or even assisting the recipient
with meal prep/grocery shopping. The real differences are that grocery
shopping & budgets must be kept separated & a valid lease must be in
play. ODSP wouldn't think to suggest that a recipient that lives
outside the family home couldn't share a meal periodically or have
assistance with grocery shopping or meal prep from their family.
The concept of room & board allowance is for those who live somewhere
where a single amount pays for a room & regular prepared meals
throughout the day. In fairness a person in such a situation doesn't
have the additional expenses of grocery shopping or preparing meals;
the amount they part for room & board includes that. It isn't being
greedy to recognize that if a recipient is expected to generally pay
for their own food that they are entitled to the amount any other
responsible for their own food costs would receive.
It's important to remember that if you do decide you are not a boarder
but a tenant with a lease that certain things change for both the
tenant & landlord. If the tenant is a family member & the amount they
pay in rent is equal to or less then the total housing costs divided
equally amongst those residing in the home then it's best for the
landlord to declare the rental income (being aware that they might
even be eligible for tax benefits if the tenant pays less then an
equal portion or if equal it's considered a wash & won't be held
against them). If the landlord decides not to declare the rental
income regardless of it's effect on their taxes then the tenant isn't
eligible for the property tax credit. If both tenant & landlord are
theoretically eligible for property tax credit then it is divided
equally based on the number of people in each household. The most
advantageous would be if the landlord isn't eligible for the property
tax credit (income too high) & doesn't make a profit as a landlord
then the tenant will receive the entire property tax credit if the
landlord declares the income & the landlord can receive a tax credit
for the difference between how much they receive & how much an equal
portion of the housing costs is (win-win for both). I would advise
anyone in this position to seek legal advice on what the best approach
is for them but the above is a somewhat convoluted explanation of the
rules for rental income & the CRA. Things do become much more complex
if both the landlord & tenant are ODSP/OW recipients though so keep
that in mind if that applies to your situation.
ATB
Bill Higgs
hint around and try the same sex couple routine LOL.
I remember quite well one worker asking me questiosn like "what does the
roomates family call you?? etc etc It ticked me off, so I snidely told her,
that since she was worried who was sleeping in my bed, that the only person
to sleep in my bed besides me was my dog. She was not amused.
Bill
----- Original Message -----
From: "justice4odsp" <justic...@gmail.com>
To: <odspfi...@googlegroups.com>
Sent: Saturday, July 09, 2011 8:23 AM
Subject: Re: [odspfireside: 38010 ] How to obtain the full ODSP amount and
why ODSP does not disclose the steps.
Many questions about ODSP
abrowne
From: Many questions about ODSP <stevel...@gmail.com>
To: odspfi...@googlegroups.com
Cc: Graeme Treeby <graeme...@sympatico.ca>
Sent: Tue, July 12, 2011 12:48:12 PM
Subject: Re: [odspfireside: 38090 ] How to obtain the full ODSP amount and why ODSP does not disclose the steps.
Many questions about ODSP
Henson Trusts, The Ontario Disability Support Program (ODSP) Benefits and Tax Credits
Sometime ago I began a very fruitful dialogue with Kenneth C. Pope, LLB, a lawyer in Ottawa, Ontario. He is one of the most experienced legal practitioners in Canada providing services to families with a family member with a disability and has focused his professional career to help them put in place Henson Trusts.
What I would like to share with you in this month’s article is a recent talk I had with Kenneth Pope where we discussed Henson Trusts, ODSP and other tax credits that families and disabled individuals can benefit from but are often unaware.
The Interview:
Merrick: “What is ODSP?”
Pope: “ODSP stands for The Ontario Disability Support Program. The Ontario Misistry for Community and Social Services describes it as program that is designed to meet the unique needs of people with disabilities who are in financial need, or who want and are able to work and need support. Other procinces have similar disabled support programs”
Merrick: What happens if a family member with special needs is receiving Ontario disability support benefits and then he/she is left an inheritance? Will that inheritance be considered an asset and disqualify them from benefits?”
Pope: Yes, The family member if left an inheritance will be not be eligible for benefits such as the ODSP unless special arrangements are made in the parents’ Will.
Merrick: “Are there any solutions for parents and guardians of persons with special needs that will allow them to leave an inheritance and not disqualify the disabled individual from receiving disability benefits from the government?”
Pope: “Yes, the only real solution to this inequity is a HENSON TRUST, created by the parents’ Will. Only available since 1989, when the case after, which it is named was upheld by the Ontario Court of Appeal, it places estate assets in the care and control of a Trustee to be administered for the benefit of a beneficiary. Inheritances placed in a properly prepared Absolute Discretionary Trust are not the asset of the child and will not affect provincial benefits.
Merrick: “What are the motivations that cause parents and guardians to setting up a Henson Trust?”
Pope: “Many families have members who require assistance in handling their daily affairs, regardless of their other abilities. Special Beneficiaries often benefit from guidance in handling large sums of money or significant assets, temporarily or on an on-going basis. Some beneficiaries may be unable or unwilling to seek guidance, and may at some point be left without care unless special provisions are put into place.
To solve these problems a Henson Trust must be created during a parent’s or guardian’s lifetime (inter vivos) or according to the terms of parent’s or guardian’s Will (testamentary). These Trusts are invaluable in planning for a child’s care when a parent or guardian are no longer there.
Merrick: Why do some people receiving Ontario provincial disability benefits receive $730 each month while others receive $959?
Pope: “The $730 amount is the ‘room and board’ allowance. If a child lives with the parent they will automatically be slotted into this amount. The $959 amount is composed of $427 for shelter/rent and $532 for supplementary benefits for everything else.”
Merrick: “Do you recommend strategies that will allow individuals to receive the full amount?”
Pope: “A simple method to receive full benefits is by setting up a lease arrangement with the parents and having the parents charge at least the shelter allowance amount. The benefits should then be increased to the proper amount. These shelter payments by a blood relative are not to be included as “rental” income. Rental losses are not allowed if your rental operation is a cost-sharing arrangement rather than an operation to make a profit.
You can deduct your expenses only if you incur them to earn income. In certain cases, you may ask your son or daughter, or another relative living with you, to pay a small amount for the upkeep of your house or to cover the cost of groceries. You do not report this amount in your income, and you cannot claim rental expenses. This is, in fact, a cost-sharing arrangement, so you cannot claim a rental loss.
The child cannot then make use of the “tenant property tax” credit.
If the child is simply unable to shop or cook, even with supports, then the increased amount may be unavailable on the basis that the food and lodging is provided by the parents. This turns on the facts of each situation.”
Merrick: “Many people have heard about the ‘caregiver credit’ used by some families to reduce taxes. When does this apply?”
Pope: “If a child is over 18 years of age, on ODSP and resides full time or substantially all of the time with the parent or other family member, then the family member qualifies as a care-giver of that child. They can then claim the ‘care-giver tax credit’ and pay approximately $500 less in taxes than they would have.
This credit applies in each ongoing year in which these factors exist. The credit came into effect in 1998, and can be back filed to that year if applicable. This would return approximately $4,500 in taxes for a back filing from 2006.
This tax credit applies in the circumstances of any adult family member, not just children, for example an aged parent who survives on a small pension and who has been released from hospital after an operation.
Merrick: What is the ‘disability tax credit’? I know some parents save on taxes by using this tax credit and others have never heard of it.
Pope: This tax credit is available whenever a child of any age is markedly restricted in the activities of daily living on an on-going basis.
The restrictions can be cognitive, developmental, physical or mental, or a combination of disabilities. This tax credit must be applied for and approved, by filing a T-2201 form with Canada Revenue Agency.
Once approved, the credit is transferred from the child who qualifies to a parent or other supporting person. The tax credit is only useful to someone who pays taxes, and in many cases the person with the disability has no taxable income.
The credit was recently increased, and now returns $1,500 each year to a taxpayer who makes use of it. It can presently be back filed to 1996, back ten years on a rolling annual basis.
Note: In years prior to 2001 the tax credit only returns $1,000 per year, as that was the previous allowance. Back filing for the full period, if applicable, in 2006 would return approximately $14,000 to the taxpayer.”
The Bottom Line
Henson Trusts, ODSP, Benefits and Tax Credits are special arrangements necessary to properly ensure that loved ones of clients are given the extra care they deserve, and that inheritances will not be wasted. One can just imagine the potential liability someone who puts himself or herself out in the public domain as a client’s advisor could be who ignores the options available for clients who are parents or guardians of children with special needs.
If you believe a client would benefit from adopting any of the strategies mentioned above it is important to seek specialized legal counsel and the proper financial planning professionals will assist in setting up and managing the right plan for your clients who care for children with disabilities.
abrowne
From: Many questions about ODSP <stevel...@gmail.com>
To: odspfi...@googlegroups.com
Cc: Graeme Treeby <graeme...@sympatico.ca>
Subject: Re: [odspfireside: 38111 ] How to obtain the full ODSP amount and why ODSP does not disclose the steps.