Who Is the Account Holder in an RDSP?

Understanding the Role and Why It Matters

Opening a Registered Disability Savings Plan (RDSP) is an important step toward long-term financial security for a person with a disability. One of the very first decisions in this process is choosing the account holder. This choice is more than just a formality—it sets the stage for how the plan will be managed and how effectively it will support the beneficiary’s future.

What Does an Account Holder Do?

The account holder is responsible for establishing and managing the RDSP on behalf of the beneficiary. Their role is both administrative and protective, ensuring that:

• Contributions are made correctly

• Investment decisions are in line with the beneficiary’s long-term goals

• Government rules are followed to maintain eligibility for grants and bonds

  
  

Simply put, the account holder is the steward of the RDSP, safeguarding the beneficiary’s savings and helping them make the most of available government incentives.

When the Beneficiary Can Be the Account Holder

If the beneficiary is an adult (18+) and legally capable of managing their finances, they can open the RDSP themselves and act as their own account holder.

This approach gives them full control over the plan, from approving contributions to making investment decisions. For many adults, managing their own RDSP is a step toward financial independence and personal empowerment.

When Someone Else Needs to Step In

Not all adults are legally able to enter into financial contracts, and some beneficiaries may be minors. In these situations, the law allows others to act as account holders, including:

• Parents or legal guardians: Can manage the plan for minors or adults lacking legal capacity.

• Qualifying family members (temporary measure until 2026): Siblings, grandparents, spouses, or parents can step in when needed.

• Legally authorized representatives: Individuals with Power of Attorney or court-appointed guardianship can oversee the RDSP.

  
  

These account holders are legally responsible for acting in the best interest of the beneficiary, ensuring the RDSP remains active, well-managed, and aligned with its long-term purpose.

Why Choosing the Right Account Holder Matters

Selecting the correct account holder is not just an administrative step—it’s a crucial decision that can influence the RDSP’s effectiveness over a lifetime. The right account holder ensures:

• Timely contributions and proper management of government grants and bonds

• Consistent oversight of investments to maximize growth

• Protection of the beneficiary’s financial future, even if they cannot manage it themselves

  
  

In short, the account holder is the person who ensures the RDSP truly fulfills its purpose of helping the beneficiary achieve long-term financial security.