Henson Trust
Question: "What will happen to my child after I'm gone?"
Answer: A responsible parent will have a Henson Trust in their Will for the benefit of their child with a disability.
This question causes great concern for many families. But as you are aware, there is an extra-ordinary problem for parents whose children, young or old, receive some form of provincial disability support.
A child or adult who receives child benefits or Ontario Disability Support Program benefits will be disqualified from receiving them if left an inheritance, unless:
- The parents’ Will creates an absolute discretionary "Henson" Trust which will protect the inheritance; and
- The Henson Trust is funded by insurance or assets, and suitable Trustees are chosen to carry out the terms of the Trust.
Parents who know about this problem may intend to leave nothing for their child, since it would simply be used to replace other benefits until it is all gone, or to leave a share to another person in a 'secret' trust. These are poor choices for reasons Ken can discuss.
The only true solution lies in the Henson Trust, a special form of Trust arrangement. It is affordable and accessible to all families who can make use of it, but is not well known.
Ken is especially concerned about this problem and is glad to provide some advice. Ken takes the time to know his clients and their situations and to offer them timely service with an understanding of the needs and concerns of families. His professional and personal relationships with his clients requires a lifelong commitment to their service and their needs.
Please feel free to call to Ken: 613-567-8230 (direct line) or 1-866-536-7673 (Toll Free), or to invite other parents to call, if there are any questions.
Inter Vivos and Testamentary Trusts
Many families have members (of all ages) who require assistance in handling their daily financial affairs, regardless of their other abilities. Beneficiaries often benefit from guidance in handling larger sums of money or significant assets, temporarily or on an ongoing basis.
Some such beneficiaries may be unable or unwilling to seek guidance, or may at some points be left without guidance unless special provisions are put into place for their assistance.
An Absolute Discretionary Trust is a legal arrangement which places assets in the care and control of a trustee to be administered for the benefit of a beneficiary. A Trust may be created during your lifetime (inter vivos) or according to the terms of your Will (testamentary). This includes inter vivos Henson Trusts.
Discretionary Trusts have value when considering the effect an endowment or inheritance would have on sources of income and other financial support for a beneficiary, such as provincial benefits programmes.
Current caselaw indicates that properly prepared Discretionary Trusts, such as a Henson Trust, will not remove the entitlement to provincial benefits. Although inter vivos Trusts have some limitations they are of considerable value.
It is essential that Discretionary Trust arrangements continually consider ongoing changes in provincial regulations and new caselaw.
