Thank you, Mr. Chair and committee members, for allowing me to speak with you today.

I have four main points I'd like to address that concern planning for people with disabilities that I have encountered in my private practices. I think if these issues were addressed, it would be greatly helpful to people with disabilities and their families. It would be a ray of hope for a more inclusive and supportive future.

The first thing I'd like to talk about is with respect to the inclusion of siblings as successor holders of RDSPs, which is part of Bill C-59. This change, which I am very heartened by, addresses a very real need and concern for parents of children with disabilities. It makes their planning process more streamlined, more flexible, and it gives certainty and comfort around knowing their children's savings will be seamlessly managed when they're gone. This is a major worry for people who have children with disabilities.

However, this measure is still temporary, and it expires at the end of 2026. I believe this excellent measure should actually be made permanent. I would hope that whatever negotiations or mechanisms need to be implemented to make this change permanent can be done.

The second point that I would like to talk about today concerns specified disability savings plans. These are for beneficiaries who have shortened lifespans. Regular RDSPs can be designated as specified disability savings plans when a doctor or a nurse practitioner provides a written opinion that the beneficiary is unlikely to live more than five years. At a really high level, the current provisions allow for a withdrawal of up to $10,000 of the taxable disability assistance payments or the LDAP formula, whichever is greater, without having to repay the grants and bonds.

The issue here is that with older plans that were funded early on, the taxable portion of those plans could be well in excess of $50,000—so $10,000 times five years. With a beneficiary with a significantly decreased life expectancy, this current structure ends up creating estate value, which is not the purpose of these plans. These plans are intended to help the lives of people with disabilities while they're living. What would be more helpful instead would be perhaps a percentage withdrawal, rather than a specific dollar value limit that would allow those people with disabilities, who also have a shortened life expectancy, to properly access their savings, to make their lives easier and more comfortable in their final years.

My third point today concerns inter vivos Henson trusts. It would be helpful if those could regain access to the principal residence tax exemption. The loss of the principal residence exemption for these types of trusts happened in 2016. It has had unintended consequences for people with disabilities, who have a property that they live in in this type of trust that was set up for them prior to 2016. The particular issue here is that the 21-year rule causes a deemed disposition and causes capital gains to be paid on all trust assets. Without the principal residence exemption, these trusts have to pay capital gains based on the increase in the value of the property since 2017. This is unjust since these properties are in fact the principal residence of the person with disabilities living in them. Further, it's problematic, because it imposes hardship on the beneficiary if the trust assets don't have sufficient money to pay the capital gains.

The final piece I will mention today is around expanding access to the disability tax credit itself for people who have a diagnosis of a degenerative illness or an episodic disability. The disability tax credit is the key that unlocks access to lots of programs, including the ability to establish a RDSP, which is the aspect that I personally encounter in my work. When we're talking about RDSPs, the time value of money is significant. The earlier on that a person can start saving, the more meaningful those savings become.

It's a real shame that someone who has a diagnosis of something degenerative in nature like MS, for example, that progresses over time, is unable to start saving. They could get the grants and bonds and all of the sheltered growth on those savings when they first get the diagnosis versus the situation now, which is that they have to wait a number of years for their condition to get bad enough to qualify for the DTC in order to even open up an RDSP.

Recently there were some provisions made, which was a really great step in the right direction for people with type 1 diabetes to automatically qualify for the DTC. What I would love to see is if we could make even more strides in that direction and continue expanding access.

Thank you very much for giving me the opportunity to speak with you today.

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