One family's experience with the CRA and disability
One of our families has experienced the following issue and we are seeking feedback from other families who may have had the same experience.
Their son's disability form for tax purposes expired as of this year. They contribute to a disability savings plan for him. His doctors did not think that he will be successful in getting it approved again this time due to how the form is set up. They do not want to lose the money that was put in so far by the CRA or even have to close this account. They wanted to know what happens if he is no longer deemed disabled.
They called the CRA and were told that they could get a temporary reprieve from closing the account if they get their son's doctor to write a letter after the application is rejected saying that there is a chance that he might become qualified again in the future (meaning relapse). The family wants to know how it is that they can give it for when the child was disabled and then take it back once they no longer qualify for the future. On top of that because they only just started investing, they stand to lose what they contributed if the market did not gain in the short term.
They brought this to our attention as they believe that this is something that should be made known. They wonder why healthy kids and parents do not have their money taken away retroactively once their parents no longer qualify (i.e. for CTB, etc.) yet our kids are having this happen to them.
Since our strength is the collective input of our families and their experiences and insights, we are putting this out there for your feedback and awareness. The family believes they are not the only ones to have encountered this issue. Perhaps if this is a widespread issue facing our families, we can as an organization make the CRA aware of our concerns. If you have a similar experience that you would like to share, please email us at email@example.com.