The Canadian Imperial Bank of Commerce (CIBC) will now be offering RDSPs to Canadians across the country. CIBC announced this morning in a news release that they are prepared to issue RDSPs.
“The RDSP is an effective way for clients with disabilities and their families to save for the future and make the most of government grants and bonds, all the while deferring tax on the plan’s earnings and growth”, says Jamie Golombek, Managing Director of Tax and Estate Planning for CIBC.
“Golombek discusses that prior to the arrival of the RDSP, trusts were the main vehicle used when planning for persons with disabilities. Fully discretionary trusts have been commonly used to set aside assets for a disabled beneficiary, including an inheritance, but still preserve the beneficiary’s right to collect certain government benefits and entitlements. Putting assets into an RDSP, instead of giving them to the beneficiary outright, will also protect against a beneficiary losing valuable disability benefits in most provinces, but RDSPs have the added benefits of saving money in a tax-deferred manner, while collecting CDSGs and CDSBs.”
For the entire press release you can visit: http://www.newswire.ca/en/releases/archive/February2009/24/c3240.html