Disability Trust Clause (Henson Trust Language) (BC)

Summary

This clause directs the trustee to hold the residue of the settlor's estate in trust for the benefit of the named beneficiary during their lifetime on the settlor's terms. This clause includes practical guidance or drafting notes. A client may wish to settle a trust for a beneficiary who is disabled. Inquiries should be made as to the residency of the proposed beneficiary, as each province has different rules governing pension benefits for disabled adults. Where the proposed beneficiary resides in British Columbia, any trust for beneficiaries receiving or who may be entitled to receive benefits in the future under the Employment and Assistance for Persons with Disabilities Act, S.B.C. 2002, c. 41 ("EAPDA"), must be carefully drafted, and the drafter must understand the statutory provisions of the EAPDA. It imposes strict asset and income thresholds for pension benefits payable to persons with disabilities ("PWD"). Because the provincial disability pension system discourages gifts of ...