Effective November 1, 2018, the Regulations are amended to exclude from the calculation of income any payment from a trust or life insurance policy, gifts or other voluntary payments to an ODSP applicant or recipient. Currently, such payments – unless used for a specified purpose, such as to contribute to an RDSP – are excluded from income
only up to a maximum of $10,000 for any 12-month period
. This restriction has had the effect of discouraging families and friends from making gifts to their loved ones on ODSP out of fear that they might jeopardize their eligibility status. The restriction has also placed undue limitations on the amounts that trustees could disperse to beneficiaries of Henson Trusts.
Once the amendments come into effect, ODSP recipients will be able to receive payments from gifts, trusts and life insurance proceeds in any amount. The time has come for Ontarians with disabilities to have the
option
to use their trust funds for paying the cost of decent rental accommodations or other housing costs, purchase healthy food, take a vacation, and/or otherwise live with dignity and enjoy a reasonable quality of life.