CANADA Law and Practice Contributed by: Ian Hull, Suzana Popovic-Montag and Nick Esterbauer, Hull & Hull LLP
may be available to assist individuals in expediting the citizenship process: • express entry, consisting of the Canada Experience Class programme, the Federal Skilled Workers programme and the Federal Skilled Trades pro - gramme, which all assist in obtaining permanent resident status more quickly; • urgent processing – the processing time is short - ened in circumstances where citizenship may be required to apply for/retain employment; and • ministerial discretion under Subsection 5 (4) of the Citizenship Act, RSC 1985, c C-29. 8. Planning for Minors, Adults with Disabilities and Elders 8.1 Special Planning Mechanisms Minors A variety of tax credits and other government benefits may be available to supplement the cost of caring for minor children in Canada. By way of example, a parent who did not contribute to the Canada Pension Plan (CPP) while caring for a child under the age of seven may be entitled to CPP benefits. The Child Rearing Dropout Provision provides that the Canadian govern - ment will contribute to the CPP during an absence from the workforce while raising a minor child on one’s behalf. Registered Education Savings Plans For Canadians who pursue post-secondary educa - tion, there are certain tax benefits available to help fund tuition and living costs for students while they attend university, college or other training. A RESP is a popular and tax-effective tool to save for a child’s future. Contributions to a RESP are held in trust for the child, and the federal government will match 20% of contributions (to a maximum of CAD500 on an annual basis or CAD7,200 during the child’s lifetime) as part of a programme known as the Canada Educa - tion Savings Grant. Contributions to a RESP may also be made by the Canada Learning Bond. RESP contributions are not tax deductible. Tax on income generated by the plan is deferred until the
withdrawal of the funds, typically in the hands of the child, who is often in a lower tax bracket than parents or other contributors. Trusts benefitting minors High-income parents could establish trusts for the benefit of their children while they are minors; inter vivos trusts are used less frequently than testamen - tary trusts. Family trusts may be especially useful for high-income families by deferring taxation and having income taxed in the hands of family member benefi - ciaries who are in lower income tax brackets. Planning for Adults With Disabilities Government benefits are typically available to adults with disabilities who are unable to work. By way of example, Canadians with “severe and prolonged” disabilities may qualify for disability benefits through the CPP. In 2023, the federal government also passed legislation establishing a guaranteed, tax-free income supplement to working-age Canadians who are living with disabilities. Payment to eligible Canadians began in July 2025. Social assistance may also be available for adults with disabilities who are unable to work and have limited assets. Disability benefits received through the gov - ernment are typically considered to represent taxable income. In addition to benefits and grants available to adults living with disabilities, Canadians may be eligible for a variety of tax credits and deductions related to dis - ability. Registered Disability Savings Plans (RDSPs) RDSPs operate similarly to RRSPs and RESPs. Con - tributions to an RDSP are not tax deductible, and funds held within the plan increase on a tax-deferred basis. RDSPs are also associated with the receipt of government grants and bonds to which adults with disabilities may be entitled, which can assist in max - imising the funds available to adults with disabilities. Henson Trusts When providing a bequest to an adult beneficiary in a will, the testator may wish to structure the gift as a Henson Trust so as to allow the settlor or testator to
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