One of the biggest concerns for families of people with disability is how to provide for the future welfare of their loved-one so that the long-term financial security and social well-being of that relative is provided for.

So when we recently came across this great new scheme, which has just got underway in Canada, called the Registered Disability Savings Plan (RDSP) - a savings plan that helps families plan for the long-tem financial security of relatives with disability - we felt we had to bring it to your attention.

Canada’s RDSP is the first in the world but other countries are paying close attention. An estimated 500,000 Canadians with disabilities will benefit from the plan, which came into effect on December 1, 2008.

The RDSP encourages families to save money regularly towards their loved one’s future. The invested funds grow tax-free until withdrawal and the Canadian Federal government will provide generous monetary incentives on these special savings accounts.

While a person is only permitted to have one RDSP, contributions into the plan can come from the individual themselves, any of their family members, and / or their friends; up to a maximum limit of CAD$200,000. Contributions can be made into the savings account up until the beneficiary’s 59^th birthday.

And while the fund is growing, the government adds a grant on an annual basis based on the level of the family’s annual net income. To avoid paying tax penalties, payments out of the plan should not be made until ten years after the last government grant was received. Payments out of the plan can begin at any time, but must begin by the beneficiary’s 60^th year. There are no restrictions on when the funds can be used or for what purpose, to supplement income, to enable home ownership or just to plainly enhance quality of life.

We thought this was a marvellous idea that n doubt will bring great peace of mind to parents and families of people with disabilities. We will watch this one with interest.

For more information please see www.rdsp.com

Error and omissions accepted.