Upon the death of an RDSP beneficiary, the plan must be wound up by December 31 of the following year. Grants and bonds paid in the previous 10 years will be repaid to the government. Growth income, grants and bonds are taxable in the hands of the Beneficiary's estate. Initial Contributions are tax-free.‍In the event that the Beneficiary is no longer eligible for the DTC, the Grants and Bonds will remain in the Account. The RDSP will remain active, but no new contributions can be made to the account and the account will not be eligible for grants or bonds or carry forward grants and bonds.