Disability plans similar to RESPs

Proposed registered plans may not be ideal for clients in all asset levels

Investment Executive, Monica Townson

The Federal Government has introduced draft legislation for registered disability savings plans, first proposed in the 2007 budget. The plans will be operated similar to the existing registered education savings plans and are intended to help parents and others save for the long-term financial security of a child with severe disabilities.

The new plans will potentially be very good for low-income or middle-income families. For others, advisors should step back and look at all the alternatives, says Cynthia Kett, a principal with Stewart & Kett Financial Advisors Inc. in Toronto.

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