How to Handle an Inheritance

[Elise Jardan]

I'm hoping some of the legal beagle types here and those with similar experiences could help me.

I'm going to come into an inheritance that's not small but not crazy big either. Assume it's somewhere between 15,000 and 100,000.

My question is what would be the best course of action for me? I'm on ODSP and have minimal savings and no real exempt assets to my name.

Is there a way to properly keep the inheritance, in some fund or something, that won't get me kicked off of ODSP? I'm thinking it would be really helpful in my old age when I'm no longer eligible for ODSP. I'll have very little more than basic OAS then.

Any suggestions or experiences would be really appreciated.

Thank you.

E.

[Goldielover]

Here's a link to the ODSP page about inheritances.  If it is under $100,000.00, it can be placed into a trust, which would make it an exempt asset.  There are different options if it is over $100,000.00, but from what you say it won't be.

http://www.mcss.gov.on.ca/en/mcss/programs/social/odsp/income_support/odsp_inherit.aspx

[Elise Jardan]

Thanks so much. That's very helpful.

I looked up a bit more on line and it's kind of complicated to go to into. When the time comes I'm going to need some help with details.

If you know, do you know if:

1. If just being on ODSP is enough to establish a trust to put an inheritance into?
   Do I need some other kind of declaration, from some other source (doctor, lawyer, family member?) to be eligble?
2. Can I do this entirely on my own or do I need another person to be responsible, such as a family member?
   I'm not close to any of my family and don't really have people I could trust. This can't be an uncommon situation I'd think.
3. Who would be a good place to go to for advice and instructions on this when the time comes?
   I can't afford a lawyer really. Are there community resources that might be free or low cost?
   Can a paralegal, I've seen a few post here, be able to help and at a cost I could afford. I certainly would want to pay what someone's time is worth but I simply don't have the resources for much, unfortunately.

Again, thanks for the help.

E.

[Graeme Treeby]

A trust is one option but a better one is to place the funds in a segregated fund.  These are exempt up to $100,000 under ODSP rules.  I set these up all the time.

 

Cheers...Graeme

                                   

                                    

Graeme S. Treeby

 

The "Special Needs" Planning Group

70 Ivy Crescent, Stouffville, ON L4A 5A9                                 

Phone/Fax 905 640-8285

www.specialneedsplanning.ca

 

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[Anne W]

What a great question, thank you for asking it because I will someday be in a similar situation I think.  I am currently on Ontario Works and was recently rejected for ODSP but just filed a request for an internal review so may soon be on ODSP I hope!  Anyway, I will eventually be inheriting some money, and half a house (sister gets half too).  The money amount will definitely be under 100k but we will sell the house and end up with about 100k each from that.  I thought I could put money like this into a Registered Disability Savings Account (which I qualify through Federal Govt who consider me disabled) and that would make it exempt on both OW and ODSP.  Does anyone know if this is correct? 

Also does anyone know how much a paralegal or lawyer would cost to deal with this sort of thing?

Thanks in advance!

[abrowne]

A seg fund is probably your best option.  You don't need anybody else

to manage that for you.

I am like you and feel I don't need somebody else to manage my affairs.

Angela

[Dainan Mannella]

Have you looked into an RDSP? It seems it would do what you want.

http://www.mcss.gov.on.ca/en/mcss/programs/social/what/rdsp.aspx

[DEIRDRE RICE]

 

 

Hi, I need help. I am a single mom, all my kids are adult and 2 live with me. I informed ODSP, in Dec 2012, that the one daughter was going to move to T.O, for college.I told them that the course was Jan-May, and then IF she qualified (she didn't) Sept-Jan 2014.

My daughter returned home in June 2013, unable to continue studies. I had informed ODSP, that she was getting OSAP, and living away. The OSAP, fell short of rent and food after all fees were paid.

 

My daughter has been looking for work, since returning home, but only was able to get PT temp work for 2 months.

She was frustrated, and called OW, to see if she qualified. SHe didn't as she wasn't 5 yrs out of school, etc. OW, said to call ODSP, and have her put back on ODSP benefit unit. I called Fri, and left a message for my worker.

 

I am also raising 2 young grandsons, and have provided any documents etc on everything.

We are in housing and I made sure housing knew my daughter was back, and what she was doing for work.

 

My worker called while I was out getting grandsons, and left an upsetting message. SHe was releasing my Feb cheque but then putting file on hold, as she wants to know if my daughter got OSAP (I called and told her) and if she had worked, she was going to have to check my eligibility during those months.

 

I am SO upset, I have never had a problem with ODSP.....been on since 1995.

 

If you have an adult child living at home, who is not on your benefit unit with ODSP, how does this affect you? I am so confused.

 

Thank you.

 

[Elise Jardan]

I hope it works out for you. I've never had problems with ODSP. My worker has always been good to talk to and sort things out for me.

Have you tried calling him directly and just explaining stuff? That's always worked out best for me. The paper work back and forth can get lost and confusing. Just talking to someone straight on the phone has done wonders for me in getting some things just straightened out right away. I've had a straight up good guy when I needed him so I guess I'm lucky.

[jbkeh]

Answering the last question first:

 

An adult offspring who is not part of your Benefit Unit is presumed to be paying you board or rent (for it to be rent, she would have to have separate food supplies and prepare her own meals). The deduction from your Benefit Requirements is 40% of what she pays if board and 60% if rent, but in no case can the deduction be less than $100.

 

The one exception is if the adult offspring is receiving social assistance in her own right. In this case, you do not face a board/rent deduction.

 

See ODSP Dir 5.1:

 

http://www.mcss.gov.on.ca/documents/en/mcss/social/directives/odsp/income_Support/5_1.pdf

 

The distinction between a Dependent adult offspring and an Independent one can be confusing. It boils down to this:

 

1. She is a dependent adult offspring unless she falls into the criteria that make her an independent adult offspring. (Dependent until proven otherwise.) Dependent adult offspring living with parents cannot obtain OW in their own right.

2. A person can be an independent adult offspring for a specific month (e.g. earn more than the maximum allowed by OW) or permanently.

3. An independent adult offspring (whether just for the month or permanently) may choose to be treated as a dependent adult offspring in their parent's benefit unit. (This does not remove the requirement to participate in the OW job search program.) 

 

See OW Dir 3.4:

 

http://www.mcss.gov.on.ca/documents/en/mcss/social/directives/ow/0304.pdf

 

Note that she is a permanently independent adult if

 

"he/she is eligible as a sole support student (self-supporting or independent)
under the Ontario Student Assistance Program (OSAP) or the First Nations
Post Secondary Funding program, or has been eligible as such at any time in
the past",

 

so I do not see how OW could deny her being an Independent Adult (although it may well be better that she elect to be treated as a dependent adult in your benefit unit).

 

This brings us to the "can of worms" that OSAP can present to those on social assistance. Ontario is not going to pay twice for her food and shelter, so it is imperitive that if she received OSAP money for anything other than scholastic expenses, she was not "receiving" (as part of your Benefit Unit) money from ODSP at the same time. Conversely, once she returned home, she should have either gone onto OW in her own right, or have chosen to be a dependent adult offspring in your benefit unit.