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Any money, property or possessions you inherit could affect your eligibility or the amount of money you get for Ontario Disability Support Program Income Support.

It is possible that all or part of your inheritance may be exempt. This means it does not affect your eligibility or the amount you get for Income Support.

Your Ontario Disability Support Program worker can help you figure out how an inheritance may affect your Income Support. That's why it is important to report any inheritances you receive or expect to receive to your worker.

If you inherit money

Under the Ontario Disability Support Program, we consider an inheritance as a gift. Some of your inheritance may be exempt under the rules for gifts and voluntary payments.

Up to $6,000 of the total value of all gifts, voluntary payments and payments from a life insurance policy or trust you receive in a 12-month period, is exempt as income.

Generally, we will treat the money you inherit as income when we calculate your eligibility for Income Support in the month you receive it. For example, if you inherit money in August, we will consider it when we calculate your Income Support for August.

If you have any money left from your inheritance in the next month (September in the previous example), we will treat it as an asset in that month. Asset rules may apply that could affect your eligibility for Income Support.

But you can use the money towards assets that do not affect your eligibility for Income Support, such as:

  • investing in a Registered Education Savings Plan (RESP) for your children
  • investing in a Registered Disability Savings Plan (RDSP),
  • using it to buy a disability-related item that has been approved in advance, or
  • buying a home to live in.

Inheritance and trusts

If you inherit some money and you place it in a trust within six months of receiving it, up to $100,000 of your trust may be exempt as an asset.

If you inherit a trust that has been set up in a will, the inherited trust is not considered income and up to $100,000 of your trust may be exempt as an asset.

If you have a trust and a life insurance policy, up to $100,000 of the combined value of the trust and the cash surrender value of the life insurance policy may be exempt as an asset.

"Cash surrender value" refers to the money an insurance company will pay when the insured event occurs or the policyholder cancels a life insurance policy early.

If you inherit property or possessions

We will treat property or other possessions you inherit as assets. Asset rules may apply which could affect your eligibility for Income Support.

There are some situations when the property or possessions you inherit may be considered exempt. Here are some examples:

  • you inherit a house and live in it
  • you inherit a car and use it as your primary vehicle.

Learn more