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Who can be a beneficiary
An RDSP can only have one beneficiary. The beneficiary must:
- qualify for the Disability Tax Credit (Disability Amount),
- be under age 60,
- have a social insurance number, and
- be a resident of Canada at the time the plan is opened.
Who can be a plan holder
The rules for plan holders depend on whether the beneficiary is a child under the age of majority or an adult. In Ontario, the age of majority is 18.
If the beneficiary is a child
The plan holder can be a parent, guardian or any other individual or organization legally authorized to act on behalf of the beneficiary. Examples: tutor, legal representative, public department.
If the beneficiary is an adult
Beneficiaries who have reached the age of majority must become the holder of their own plan. There are two exceptions to this rule:
- If the existing plan holder is a parent, the parent can remain as the sole plan holder. Or, the beneficiary and parent can be joint holders.
- If the beneficiary doesn’t have the legal capacity to manage their own financial affairs, the plan holder must be the party legally authorized to act on behalf of the beneficiary.
The beneficiary of an RDSP can also be the plan holder if they are over the age of majority and have the legal capacity to manage their own finances.
5 other rules for plan holders
- There can be more than one plan holder for an RDSP.
- The plan holder can be changed at any time.
- If the plan holder is also the beneficiary of the plan, they must be a resident of Canada. If the plan holder is not the beneficiary, they can be a resident of any country.
- Individual plan holders must have a valid social insurance number.
- If the plan holder is an agency or other institution, it must have a valid business number.
4 key points
- An RDSP can only have one beneficiary.
- An RDSP can have more than one plan holder.
- A beneficiary can also be the plan holder.
- A beneficiary can only have one RDSP.