Henson Trust PDF - Reena

Part twotheirs needs. This is how ODSP screens outpeople who could support themselves withoutODSP benefits.Asset testingAssets are savings or property that can be easilyturned into cash. An asset test can show thedifference between two applicants with the sameincome based on what property or savings eachperson has. Governments use an asset test to tryto be fair when they assess what people need.Programs with an asset test limit whatassets people can have. This is called an assetHenson Trustceiling. Putting a limit on the assets allowspeople to have some money while they are onbenefits. It is one way to make sure that beingon benefits will leave a person some money topay for unexpected costs that come up in dailylife. For example, single people who qualify forODSP are allowed to have up to $5,000 in assetssuch as cash at any one time. The asset test forODSP does not include a home that the ownerlives in as an asset. An individual or family’sfirst motor vehicle is also an exempt asset. Asecond motor vehicle can also be exempt if thespouse needs it for work and it is worth lessthan $15,000.Examples of government programs that test for financial needType ofprogramWho can qualifyWhat thegovernmentconsidersHow muchit costs thegovernmentExamples inCanadaUniversalbenefitsAny person who ispart of a group namedby the government.For example, allpeople over 65 orparents with childrenunder 18• Does the personbelong to this group?The most expensivekind of program,because many peoplecan get the benefitCanada doesnot have a trulyuniversal incomesecurity programIncometestedbenefitsPeople who are part ofa group and who• have income belowa certain amount• Does the personbelong to this group?• How much incomedoes this family have?Cost less thanuniversal programsGuaranteed IncomeSupplement (GIS),CCTB (CanadaChild Tax Benefit),NCBS (NationalChild BenefitSupplement),GST creditsAssetstestedbenefitsPeople who are part ofa group who• have incomebelow a certainamount and• do not have otherassets• Does the personbelong to this group?• How many assets doesthis family have?Costs much lessthan income-testedprograms, becauseit disqualifies manypeople from benefitsOntario WorksODSPNeedstestedbenefitsPeople who are part ofa group who• have income belowa certain amount• do not have otherassets and• who have a need• Does the personbelong to this group?• How much incomedoes this family have?• How many assets doesthis family have?• What does the personneed?The least expensivekind of programbecause• not many peoplequalify and• it limits how muchit gives people fortheir basic needsOntario WorksODSPPage 12