Henson Trust

The creation of an absolute discretionary Henson Trust is often our preferred method of creating assets to support your special needs dependant after you are gone. If managed correctly, a Henson Trust will not impact ongoing eligibility for ODSP benefits.

Typically, a Henson Trust is created by the Caregiver's Will and funded either by life insurance on the life of the Caregiver or from other assets in the Caregiver’s estate. At Transitions Wealth Strategies we arrange the life insurance plan or assist with the wording in your Will. There are strict rules on the wording of the Trust Deed. Payments out of the Henson Trust to your dependant are considered exempt income if they are used for disability related expenses; otherwise the payments are limited by the ODSP income rules.

Often times, we will create the "Transitions Life Plan" with the Caregivers with the intent of using ODSP eligibility to subsidize the growth of the assets in the Henson Trust until the plan shows that the lifestyle of the disabled can be maintained without the government support.

At Transitions Wealth Strategies, we are very familiar with the effective creation of the Henson Trust in your Wills and the considerations for the selection of an effective Trustee. We often officially act as an advisor to the Trustee who in all likelihood will be unfamiliar with the effective management of the Trust in accordance with the goals of your "Transitions Life Plan".

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