Temporary Care Assistance Asset Limit in Ontario: The $500 Child Rule Explained

The Rule That Confuses Everyone

The single most misunderstood part of Temporary Care Assistance in Ontario is the asset test. Many grandparents assume that Ontario Works will count their pension savings, their home equity, or their RRSP when deciding whether a child qualifies for TCA. They assume wrong.

Under Ontario Works Directive 3.10, TCA eligibility is based solely on the child's own financial circumstances. The adult caregiver's income, savings, investments, and property are completely excluded from the assessment. The relevant question is simple: does the child have non-exempt liquid assets exceeding $500?

What Counts Toward the $500

The $500 asset limit applies to liquid assets that belong to the child — money that is in the child's name or held directly for the child. This includes:

• Bank accounts in the child's name (savings accounts, chequing accounts)
• Cash that belongs to the child
• Trust fund payouts that the child has received and holds as accessible cash
• Other non-exempt liquid funds belonging to the child and held in an accessible account

If the child's non-exempt liquid assets exceed $500, they are ineligible for TCA until the assets are reduced to $500 or less.

What Does Not Count

Most assets that involve a child in kinship care are exempt:

• RESP contributions (Registered Education Savings Plans) — exempt, even if the grandparent or parent set up the account for the child
• RDSP contributions (Registered Disability Savings Plans) — exempt
• The child's employment earnings — if the child is old enough to work, their wages are exempt
• Payments from an employment or training program — exempt
• CAS episodic or emergency payments — one-time funds from a Children's Aid Society for start-up costs (car seats, beds, clothing) are explicitly exempt as income under the TCA rules

And most importantly: the adult caregiver's income and assets are ignored in a TCA-only assessment. Your RRSP, your TFSA, your home, your car, your OAS, your GIS, your CPP, your private pension, your bank accounts — none of it is assessed. If asked for personal financial records, ask why they are needed for the child's TCA claim.

What to Do If the Caseworker Asks for Your Bank Statements

This happens. Some Ontario Works intake staff are more familiar with standard adult OW applications — where the adult's assets matter — than with TCA. If a caseworker requests your personal bank statements, pension slips, or investment records for a TCA application:

1. Politely note that the application is for Temporary Care Assistance under Section 10 of the Ontario Works Act
2. Cite Ontario Works Policy Directive 3.10, which specifies that only the child's financial need is assessed
3. Offer to provide the child's bank statements and asset documentation instead
4. If the caseworker insists, request the office's written policy citing Directive 3.10

You can ask the office to provide its written documentation policy and explain how a requested record relates to the child's TCA assessment. The directive is clear: your personal finances are not part of the evaluation.

How to Meet the $500 Limit

If a child has more than $500 in non-exempt liquid assets — perhaps from a small inheritance or a birthday savings account — those funds need to be reduced to $500 or less before TCA eligibility kicks in. Spending the child's money on the child's legitimate needs (clothing, school supplies, medical co-pays) is the straightforward approach.

Converting cash into exempt categories also works: depositing funds into an RESP in the child's name moves money from countable to exempt. But do this transparently — an OW caseworker who sees a $2,000 withdrawal from the child's savings account the day before a TCA application will ask questions.

Our Ontario Kinship Financial Help guide includes the full asset assessment breakdown with a worksheet showing exactly what is counted, what is exempt, and how to document the child's financial position for a clean TCA application.

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