Step 6 - Registered Disability Savings Plan

Here is information on what a ‘holder’ is and how to select one

A ‘holder’ is the person who manages the RDSP. They:

• make decisions around investments and payment options
• work with the financial institution and the government to make sure that the RDSP is working as it should.

If you are an adult opening your own RDSP and you have ‘contractual competence’, you are the sole holder of your RDSP. Someone can still help you open your plan and advise you on financial decisions, but they cannot be the holder.

What is contractual competence?

The financial institution needs to know that you can manage your own financial affairs as the holder of the RDSP. Based on their assessment, they may request you have a legal representative open and manage the RDSP on your behalf.

If your contractual competence is in question, or if you are 18 or younger, then there are other holder options.

Holder options for adults who do not have contractual competence

Family member: For new RDSPs, the federal government will allow parents, spouses, and common-law partners to become plan holders. The family member can remain the holder for life. This option is only available until December 31, 2023. The option does not apply to RDSPs have already been opened or to beneficiaries who already have a legal representative.

Adult guardian: Adult guardians have different legal names in different provinces and territories, such as power of attorney, tutor, trustee, curator, and committee. In B.C. they can also be a representative through a Section 7 Representation Agreement.

Holder options for children

For a child, the holder must be a parent or guardian or legal representative. Parents can stay as the only holders of the plan when the child becomes an adult, and that child does not have contractual competency. Or they can become a ‘joint holder’ with the child. Guardians of children are no longer holders on the RDSP when a child becomes an adult unless the adult child does not have contractual competency. A qualifying person, who is legally authorized to act for the beneficiary, under the provincial legislation can open an RDSP for the individual and become a holder.