Can an RDSP be seized by a creditor?

Yes, but here’s a way to protect those savings



From the June 2016 issue of the magazine.


Q: My adult daughter has a Registered Disability Savings Plan. But she has a bad credit record and there are still a few creditors out there who haven’t been settled with. Do you know if an RDSP can be seized by a creditor?

— Stressed in Sarnia, Ont.

A: Sorry to break it to you, but there is no specific creditor-proofing for RDSPs. “It’s something the feds have identified but I haven’t heard of any actual policy proposals,” says Joel Crocker of the Planned Lifetime Advocacy Network. That being said, your daughter isn’t necessarily bereft of options to protect her savings. “One way to get creditor protection may be to purchase segregated funds in your RDSP, as these are considered insurance products and are exempt from creditor claims,” says Toronto fee-only planner Jason Heath. Keep in mind, however, that you also pay higher annual operating expenses for these types of funds, which can lower your investment returns.

4 comments on “Can an RDSP be seized by a creditor?

  1. I do allot of RDSP for our members of brain injury could you please let me know what company has a segregated fund that can be put in an RDSP you can even call me 902 209 2183 or thank you this would be a blessing for us !


  2. Which RDSP provider allows the use of Segergated Funds?


  3. can you please send me the eligible seg funds that can go in an RDSP I have close friends who would be great for a seg fund. I hope your right but I think you may be mistaken , I don’t think there has been a segregated fund approved for RDSP? Please let me know . Thanks


  4. If there was an insurance company that offered a segregated fund for your RDSP that would be nice. Currently there are no insurance companies that want to get into the administration involved with the RDSP. so unfortunately you are open to creditors requesting the funds, unless you, as the parent, open the RDSP as it would be your account with her as the beneficiary.


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