August 18, 2023

When opening a Registered Disability Savings Plan (RDSP) account, what is the difference between the “holder” and the “beneficiary?”

"The Registered Disability Savings Plan (RDSP) is a tax-deferred savings vehicle introduced by the Government of Canada to help Canadians with disabilities and their families save for their long-term financial security."

The person who opens the RDSP is known as the "holder" – and the "beneficiary" is the person for whom the RDSP has been established. In other words, the beneficiary is the individual who will receive the money within the RDSP account in the future. Alternately, if the disabled person opening the account has the appropriate capacity, they can be the "holder" AND the "beneficiary."

Note: while there can be more than one holder for the RDSP, only one beneficiary is allowed per plan.

To read about whether or not you or a loved one may qualify the RDSP, please see our last "Q & A" post – and if you have any questions, please reach out to one of our advisors, today.

Office locations: Huntsville, Parry Sound, Powassan, Orillia, and North Bay

- Spire Advisors of Assante Capital Management Ltd.