There is an outrageous story out of Quebec and Prince Edward Island about the clawback of funds saved by family members for their disabled children. The mean spirited governments in question should hang their heads in shame over what they are doing.
You should read the CBC Story before finishing this post.
The issues in question are about the governments denying disability benefits to individuals even though the savings are invested in a Hensen Trust or a Registered Disability Savings Plan (RDSP). Most provinces (including B.C.) set strict limits on the amount of savings that a person can possess before the government will cease disability payments. The payments resume only after the savings amount falls below the threshold. In B.C. the limit is $5,000 with some exceptions. The important difference is that in B.C., Hensen Trusts and RDSP payments are generally (with some reasonable exceptions) exempt from triggering clawbacks.
It pains me greatly to say this government did something right, but on this issue they are ahead of many other provinces. In fact B.C. was the first provincial government to announce after the RDSP launch that they would exempt payments from the plan from causing a clawback.
The answer to the title of this post is unfortunately; Yes this could happen in B.C. The disability benefits are subject to government policy and could change at any time. We must remain vigilant.