Two months after my son turned 18, he passed away. This was in August, 2023. We are frozen in sadness. We have not filed his final tax returns or closed his registered disability savings plan. The family registered education savings plan will be used by his younger brother, who is now 17. What do we do next? Contact the Canada Revenue Agency? The bank? What do we do now?<\/p>\n
We asked Julia Chung, chief executive, financial planner and family enterprise adviser at Spring Planning, to answer this one.<\/p>\n
While we could get into the intricacies of what you should do next, this is a catastrophic loss for a family. Know that you are not alone. <\/p>\n
Although your intentions are in the right place, said Ms. Chung, taking this task on by yourself may not be manageable for your family. <\/p>\n
\u201cThe first thing we need to address is the feeling of being frozen,\u201d she said. \u201cThat\u2019s your body and your mind experiencing overwhelm \u2013 which is absolutely reasonable considering what you have been going through.\u201d <\/p>\n
It is essential that you seek support from professionals in a situation like this. \u201cEven if you\u2019re potentially capable of doing all the tasks, you haven\u2019t been able to, and help is important to get you through the next stages,\u201d Ms. Chung advised. <\/p>\n
Start, she said, by building a team to take on what needs to be addressed. Here are the key players to consider recruiting: <\/p>\n
A grief counsellorA financial planner who has experience working with tax, estates and RDSPsAn accountant who can file the outstanding income taxes<\/p>\n
If you\u2019re not sure how to find these professionals, Ms. Chung said you can start by contacting a member of the Financial Planning Association of Canada<\/a>. That planner can then connect you to the expertise and support you need.<\/p>\n An RDSP, or registered disability savings plan, is a registered account available to individuals who qualify for the disability tax credit. The account is structured such that non-deductible contributions (up to a lifetime maximum) are matched with grants and bonds from the government based on household income, said Ms. Chung. \u201cInvestment income earned in the account is tax-deferred until withdrawal.\u201d More information on RDSPs can be found on the CRA<\/a> and RDSP Plan Institute<\/a> websites, she added.<\/p>\n \u201cThere isn\u2019t a lot to be done with the RDSP on death of a beneficiary, unfortunately,\u201d said Ms. Chung. The RDSP must be closed and all amounts remaining in the plan \u2013 after any required payment of government grants and bonds \u2013 must be paid out to the beneficiary\u2019s estate by Dec. 31 of the year after the calendar year in which the individual dies, she explained. <\/p>\n