Life events › Having a child
A new child starts several things at once: the Canada child benefit and the BC family benefit, which depend on both parents' tax returns; an RESP, which can receive government grant and bond; child-care receipts; and a review of life insurance and who is named on your accounts.
Insurance, TFSAs, RRSPs, RESPs and tax planning solve different problems. The goal is not to sell one product as the answer to everything. Each path below shows how the pieces connect for one event, and which guide to read for each piece.
Apply for the Canada child benefit as soon as the birth is registered. Keep both parents' tax returns filed every year, because the benefit is recalculated each July from the previous year's income.
The Canada child benefit is reduced by a percentage of family income above $38,237.
The basic grant is 20% of the first $2,500 contributed each year, so $500 a year, up to $7,200 in a child's lifetime.
You can deduct child care paid so you could work, run a business or study, but the claim is capped three ways.
Approval of the disability tax credit opens five things. The child disability benefit, up to $3,480 a year for July 2026 to June 2027, paid automatically with the Canada child benefit.
An RRSP deduction reduces net income on line 23600. The Canada child benefit and BC family benefit are calculated from adjusted family net income, which starts with that line.
They solve different problems. A TFSA holds money you have already paid tax on; it grows tax-free and comes out tax-free, and withdrawals do not affect benefits.
Ask five things. What would the household need to replace if one parent died, and for how many years.
Term life insurance pays a benefit if you die within a fixed period, such as 10 or 20 years, or before a set age.
Seven decisions. Who is the successor holder of your TFSA. Who is the beneficiary of your RRSP or RRIF.
What belongs with a lawyer: A will naming a guardian, and powers of attorney, are prepared by a lawyer or notary.
Call us or request a callback. We explain the tax side; insurance is arranged by Parminder Singh Oberoi through Punjab Insurance Agency Inc.; legal documents need a lawyer or notary.
