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In Ontario, ODSP recipients are generally not permitted to hold more than $40,000 in non-exempt assets without risking their benefit qualification. As a result, receiving an inheritance—especially an unexpected one—can be stressful and confusing. Many recipients are left wondering whether the inheritance will reduce or interrupt their ODSP support. When families don’t know whether their intended-beneficiary collects ODSP or not, it can lead to the preparation of a Will that includes no planning to structure the gift properly-to protect the recipient's qualification for ODSP benefits. When that happens, the recipient (or, if they are incapable, their legally appointed representative) must consider whether there are ways to protect the intended beneficiary’s qualification. The ODSP $40,000 asset limit applies to non-exempt property and funds. However, certain exempt assets are not counted when determining ODSP eligibility. If an inheritance is not planned properly, a recipient who wants to remain eligible can consider whether enough of the inheritance can be transferred into exempt assets. This would mean that their non-exempt total stays within the allowable $40,000 limit. Examples of exempt assets under ODSP include: An interest in a principal residence One motor vehicle Funds held in a Registered Disability Savings Plan (RDSP) A trust created by the ODSP recipient using inherited funds, provided the trust capital does not exceed $100,000 A pre-paid funeral Household goods and furnishings required for the reasonable enjoyment of a home There are a number of planning tools available to skillful Wills practitioners to assist in protecting a beneficiary’s entitlement to ODSP - a prime example is a Henson Trust. If you are preparing your Will and you have a family member collecting ODSP benefits, getting good advice early is crucial. - Ian Keay