The exclusion for liquid assets may apply for a limited time. This period can last from 30 days to 2 years.
All the exclusions listed below are personal to the person who has received the amount, and are not transferrable to the heirs.
30-day exclusion
Loan amount
- Debt consolidation of an adult or a member of his or her family;
- Purchase of the following property:
- furniture and household items;
- an automobile of a value equal to or less than $10,000;
- books, instruments and tools needed for:
- an employment;
- a trade;
- a craft;
- equipment adapted to the needs of an adult or dependent child with functional limitations, including a vehicle adapted for transportation that is not used for commercial gain;
- contracts:
- advance arrangement of funeral services;
- advance purchase of a sepulchre.
In order for the amount of such a loan to be excluded, the following conditions must be respected:
- The amount of the loan is immediately deposited into a separate bank account:
- in a chartered bank;
- in another institution legally authorized to receive deposits (e.g. Caisse populaire, trust company)
- The amount must be used within 30 days of its receipt for the purpose for which it was obtained.
Principal
The principal resulting from a pension or pension credits accumulated in a retirement plan, a voluntary retirement savings plan (VRSP) or another retirement savings instrument which could be returned to the recipient before the age of retirement:
- is included in the $60,000 exclusion for clients without SLCE and the $269 092 exclusion for clients with SLCE.
- must be deposited in a separate account;
- must be used in one of the following ways:
- as a contribution to another retirement plan, VRSP or retirement savings instrument;
- as a transfer, within the same month, to:
- an individual savings plan or an institutional savings plan or an individual savings account for a specific project;
- a registered education savings plan (RESP).
Amounts spent on funeral expenses
- When the recipient has hired a service provider to take charge of the body;
- When the funeral expenses are paid by the recipient within 30 days of having received the proceeds from a life insurance policy.
90-day exclusion
The principal from an indemnity paid as compensation for moveable property is excluded if it is the result of:
- a fire or other disaster;
- an act of war;
- an attack;
- an indictable offence.
This amount is included in the $187 996 exclusion for a client without SLCE (refer to the amount of an indemnity paid as compensation for moveable and immovable property), and the $269 092 exclusion for a client with SLCE. It must be deposited in a separate account.
Subject to fair consideration, the amount may be used at the discretion of the recipient.
The exclusion is valid as of the date of reception.
90-day exclusion with no maximum amount
The amount of an indemnity paid as compensation for movable property is excluded if it was paid as part of a general or specific financial assistance program or compensation program as per the Civil Protection Act.
6-month exclusion
If used within 6 months of receipt, the principal from:
- A grant or loan to repair a residence. This amount is included in the $60,000 exclusion on liquid assets for a client without SLCE and the $269 092 exclusion for a client with SLCE.
- The sale of a residence, so long as this money is used to purchase or build another residence. This amount is part of the $171 201 exclusion on property for a client without SLCE and the $269 092 exclusion for a client with SLCE. However, if this amount is used for a different purpose between the month it is received until the last day of the following month, this amount is not considered to have been spent contrary to the rules.
- A grant or loan to start an enterprise or create self-employment. This amount is included in the $60,000 exclusion on liquid assets for a client without SLCE and the $269 092 exclusion for a client with SLCE.
The amounts the person or dependent child receives in his or her capacity as student are excluded if they are a result of:
- Principal from loans and bursaries;
- Amounts from the Allowance for Special Needs Program administered by the Ministère de l'Éducation et de l'Enseignement supérieur (MEES);
- Amounts from a registered education savings plan (RESP);
- Any other source, for example an amount from a foundation, so long as the amounts are recognized as being disbursed to pay for education-related expenses.
These amounts are included in the $60,000 exclusion on liquid assets for a client without SLCE and the $269 092 exclusion for a client with SLCE.
Exclusion for 12 consecutive months
The basic exclusion from liquid assets is increased for a period of 12 consecutive months from the date of receipt thereof by an amount equal to the total value of last resort financial assistance benefits paid following:
- An adjustment due to an administrative error;
- A recalculation of assistance based on a review or appeal to the Administrative Tribunal of Quebec;
- A recalculation of assistance based on a claim made:
- by an agency because of an administrative error by this agency;
- for family allowance (FA);
- for the National Child Benefit Supplement (NCBS).
- Debt remission, in keeping with the Minister’s discretionary power;
- The payment of compensation determined by the Administrative Tribunal of Quebec and to be paid by the Ministry, as a result of the Ministry’s own delay in sending the copy of the administrative file to the Tribunal the requesting party.
The following amounts are excluded for a period of 12 months starting on the date of receipt:
- Arrears of advance payments for the Work Premium;
- Arrears of advance payments for the Working Income Tax Benefit and the supplement for handicapped persons paid by the Canada Revenue Agency (CRA);
- Arrears paid by Retraite Québec for child assistance (child assistance payment, the supplement for handicapped children and the supplement for handicapped children requiring special care);
- Arrears for Canada Child Benefits (CCB) paid by the Canada Revenue Agency (CRA) that replace, since July 1, 2016, the Canada Child Tax Benefit (CCTB), the National Child Benefit Supplement (NCBS), the Universal Child Care Benefit (UCCB) and the Child Disability Benefit (CDB).
Are also excluded for a period of 12 consecutive months, as of the date of their receipt, the sums which the Income Security returns to a recipient when a debt remission is pronounced following the demonstration of violence of the spouse and that the recipient had started reimbursing the concerned claim.
24-month exclusion
The principal from an indemnity paid as compensation for immovable property following:
- expropriation;
- a fire;
- an act of war;
- an attack;
- an indictable offence.
The principle must be:
- Deposited immediately in a separate account, or be easily identifiable in a regular account;
- Used to:
- repair immovable property;
- replace immovable property;
- operate an enterprise.
This amount is part of the $187 996 exclusion for a client without SLCE (refer to the amount of an indemnity paid as compensation for moveable and immovable property), and the $269 092 exclusion for a client with SLCE.
Exclusion for 12 consecutive months
For this type of indemnity, the amount may be used for a different purpose than the one intended, until the last day of the month following the month it was received.
24-month exclusion with no maximum amount
The principal of an indemnity paid as compensation for immovable property received for purposes other than payment of additional costs resulting from temporary housing, supplies or clothing or compensation for essential moveable property as part of a general or specific financial assistance program or compensation program as per the Civil Protection Act is excluded.
October 1 in the year following the withdrawal
The sums withdrawn from a registered retirement savings plan (RRSP) or a voluntary retirement savings plan (VRSP) are excluded until the above-mentioned date, so long as:
- These sums are immediately deposited in a separate account;
- These sums are used under the Home Buyer’s Plan.