November 19, 2019

Ontario Disability Support Program and Inheritance

G+G ODSP

ODSP AND INHERITANCE

How will an inheritance impact your income support from ODSP?

Any money, property or possessions that you receive can affect your eligibility for, or the amount of money you receive from, Ontario Disability Support Program. This includes anything you may inherit from someone who has passed on. Some inheritances will be exempt and will not have an effect on your ODSP eligibility or amount.

Inheritances are considered to be gifts under ODSP. Up to $6,000 of the total value of all gifts, voluntary payments and payments from a life insurance policy or trust that is received in a 12-month period are exempt from the calculations of your income. In other words, if you inherit money or property worth $6,000 or less within one year, your ODSP eligibility will be unaffected.

If you inherit more than $6000 in one year, the money is treated as income for the month in which you received it. When your income support is calculated for that specific month, the inheritance will be considered income earned in that month. If there is any money left from the inheritance in the following months, it will be treated as income for that month.

Money from inheritances can be used towards assets that do not affect your eligibility for ODSP, including:

  • Investing in an Registered Education Savings Plan for your children;
  • Investing in a Registered Disability Savings Plan;
  • Using it to buy a disability-related item that has been approved in advance, or
  • Buying a home to live in

Inherited property and possessions are also considered to be assets of a person receiving ODSP, and their value can be included in the calculation of income in the month they are received. There are some situations where property or possessions may be exempt:

  • If you inherit a house and live in it.
  • If you inherit a car and use it as your primary vehicle.

CONTACT US

Feel free to contact us at any point for assistance or advice with respect to Estate Law, Estate Planning, Estate Administration or Estate Litigation. We may be reached at 705-435-4339 / 1-877-85LEGAL (1-877-855-3425) or contact us via email.