RDSP – Registered Disability Savings Plan

Building a Lifetime of Financial Security and Sovereignty

Features & Options

The RDSP is arguably the most powerful wealth-building tool in Canada. Designed to ensure long-term financial independence for individuals with disabilities, it offers up to $3 for every $1 you contribute. At Peasant Finance, we help you integrate this plan into your broader estate and property strategy.

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Canada Disability Savings Grant (CDSG)

Up to $3,500 annually; 300% match on the first $500.

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Canada Disabilities Savings Bond (CDSB)

Up to $1,000/year for low-income families – no contribution required.

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Carry Forward Room

You can catch up on up to 10 years of unused grants and bonds.

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No Annual Contribution Limit

Only a lifetime limit of $200,000.

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Long Term Horizon

Funds must stay in the plan for 10 years after the last grant to avoid “clawbacks”.

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Vesting Period

Designed for long-term security, not short-term savings.

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Tax Sheltered Growth

Much like TFSA/RRSP, gains grow tax-free until withdrawal.

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Asset Test Exempt

RDSP income and assets do not impact ODSP (Ontario Disability Support Program eligibility)

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Peasant Finance Strategy

Using rental cash flow to trigger the maximum $3,500 annual grant.

See the math in action with our RDSP Performance Pro Calculator below

The Strategic Intersection: RDSPs & Real Estate Portfolios

For a landlord, a rental property is more than a building; it is a Wealth Generator. When combined with a Registered Disability Savings Plan (RDSP), it becomes a Protective Fortress for a beneficiary with a disability.

1. Funding the RDSP with “Fiefdom” Cash Flow

The biggest challenge for many RDSP holders is finding the cash to maximize government grants. As a property owner, you have a unique advantage:

  • The 300% Match Strategy: You can use a small portion of your monthly rental income—just $42 a month ($500/year)—to trigger a $1,500 government grant.

  • Direct-to-RDSP Contributions: By directing a portion of your “Peasant Finance” rental profits into the RDSP, you are effectively turning tenant rent into a 3:1 government-matched legacy.

2. Protecting the Inheritance: RDSPs vs. Henson Trusts

A major concern for landlords is what happens when they pass a multi-property portfolio to a child on ODSP (Ontario Disability Support Program).

  • The Problem: Standard inheritances often disqualify individuals from ODSP if they exceed asset limits.

  • The Solution: In Ontario, RDSP assets are fully exempt and do not affect ODSP eligibility.

  • The Master Plan: For portfolios exceeding the $200,000 RDSP lifetime limit, we recommend a “dual-track” strategy using a Henson Trust.

    • The RDSP holds the first $200,000 for maximum government matching.

    • The Henson Trust holds the remaining properties or capital, providing “absolute discretion” to trustees to support the beneficiary without triggering ODSP clawbacks.

3. Strategic Advantages for the Ontario Landlord

  • ODSP Income Exemption: Unlike rental income earned directly by an ODSP recipient (which is partially clawed back), payments made from an RDSP are generally exempt and do not reduce monthly ODSP support.

  • Generational Housing: A Henson Trust can be used to hold a rental property where the beneficiary lives as a principal residence, providing them with stable housing while the other units in the building provide income to fund their life.

  • Tax-Deferred Transfer: If a parent or grandparent is a landlord, they can often direct in their Will that certain funds be rolled over into the RDSP to protect the beneficiary’s future.

The Peasant Finance Advantage: “We don’t just manage your properties; we help you build a bridge between your real estate success and your family’s long-term security. Let’s ensure your hard-earned ‘fiefdom’ serves your loved ones for a lifetime.”

RDSP Performance Pro - Peasant Finance

RDSP Lifetime Security Projector

Maximum Matching & Bond Projections (2026 Data)

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The Fiefdom Legacy: Portfolio Transition Checklist

Integrating Real Estate Assets with the RDSP & Henson Trust

This checklist outlines the critical steps to ensuring your rental portfolio supports your family’s future without jeopardizing government support (ODSP).

Phase 1: Discovery & Assessment

  • [ ] Verify Disability Tax Credit (DTC) Eligibility: Ensure the beneficiary has an approved DTC on file with the CRA. This is the mandatory first step for opening an RDSP.

  • [ ] Inventory the “Fiefdom”: List all properties, current equity, and monthly net cash flow. Identify which properties are intended for long-term hold versus eventual sale.

  • [ ] Identify the “Funding Gap”: Determine the annual contribution needed to trigger the maximum $3,500 in CDSG grants and $1,000 in Bonds.

Phase 2: Structural Foundation

  • [ ] Open the RDSP Account: Establish the account with a financial institution that allows for self-directed investing (to match the growth trajectory of your real estate).

  • [ ] Draft/Update the “Henson Trust” Will: Consult with a specialized lawyer to ensure your Will includes absolute discretionary powers for the trustees, protecting assets from ODSP clawbacks.

  • [ ] Coordinate with ODSP: Ensure all existing assets are structured so they remain “exempt” under Ontario Ministry guidelines.

Phase 4: Long-Term Governance

  • [ ] The 10-Year Rule Monitor: Track the “LDATW” (Lesser of Debt and Taxable Withdrawal) to ensure no grants are clawed back due to early withdrawals.

  • [ ] Annual Portfolio Review: Re-evaluate rental yields and adjust RDSP contributions based on the latest government thresholds and family income changes.

Phase 3: Operational Integration

  • [ ] Automate the “Wealth Bridge”: Set up a recurring monthly transfer from your Rental Business Account directly into the RDSP. Even $125/month can trigger significant matching depending on income levels.

  • [ ] Define Property Management Succession: If a property is held in a Henson Trust, who will manage it? (This is where your property management team ensures long-term continuity).

  • [ ] Review Beneficiary Designations: Ensure all insurance policies and registered accounts (RRSP/TFSA) name the RDSP or Henson Trust as the successor, not the individual directly.

“Independence is a heady draught, and if you drink it in your youth, it can have the same effect on you as young wine.”

– Maya Angelou