disabilities and estate planning
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Disabilities and Estate Planning. By Kenneth C. Pope Barrister & Solicitor. Ken Pope. Practicing since 1980. Helps families with special needs deal with tax and disability issues. Specializes in Estate planning for families with disabilities. - PowerPoint PPT PresentationTRANSCRIPT
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Disabilities and Estate Planning
By Kenneth C. Pope
Barrister & Solicitor
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Ken Pope• Practicing since 1980.
• Helps families with special needs deal with tax and disability issues.
• Specializes in Estate planning for families with disabilities.
• Creates Henson Trusts to provide for children and protect benefits.
• Deals with problems created when inheritance not left in Trust.
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Inheritance and Disabilities
• ODSP recipient can lose benefits.
• Properly prepared Trust necessary.
• Trust can be used in conjunction with government benefits.
• Better quality of life.
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Statistics
• 1 in 8 families in Ontario effected.
• Solutions to the inheritance problem are available.
• Many families have successfully set up Henson Trusts.
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Other Choices
• Do nothing and wait.• Leave nothing while
you wait.• Leave more to one
sibling.• Use the wrong Trust.
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Henson Trust
• Absolute and unfettered discretion of the Trustee.
• Non-vesting provision.
• “Even-hand rule” reversal.
• “Inter Vivos” (during lifetime) or “Testamentary” (created by Will) Trust.
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Origins
• Case law precedent is 1000 years old.
• Henson Trust also known as a “vow of poverty Trust”.
• Originally created to protect families’ assets when member entered the Church.
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History of Henson Trust• Unique Trust created for
disabled daughter.• 1989 Court of Appeal in
Ontario, original trial judgement upheld.
• 1993 ministry provided in Policy and Procedures Manual for MCSS staff that Henson Trust is not benefit recipient’s asset.
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Planned Giving
• Charitable tax receipt can greatly reduce taxes.
• More money to charity and less to government.
• Can help protect the value of an estate for the beneficiary.
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Taxes and Disability Benefits
• Disability amount will be $6000 in 2001.
• RRSP / RRIF : No tax roll-over to child.
• $708 and $930 - Room and board versus rent and supplementary benefits.
• Disability tax credits retroactive to 1988.
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Exempt Assets
• Liquidated assets - $5000 limit issue.
• Life insurance - cash value / death benefits.
• $100 000 - ODSP regulations.
• Exempt status issue.
• Offset of income against benefits.
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Further Information
• Email: [email protected]
• Phone:1-866-KEN-POPE or 1-613-567-8230 - direct line.
• Web site: www.kpopelaw.ca
• Online or onsite seminars.