Inter Vivos Henson Trust (ON)

Summary

This is a precedent for a fully discretionary trust which allows the trustee to make distributions of income and capital to or for the benefit of a disabled beneficiary without causing the payments which the disabled beneficiary may be receiving from the Ontario Disability Support Program ("ODSP") and other benefits that may result from qualifying for the ODSP to be affected in any way. The successful use of such a trust (commonly referred to as a "Henson Trust") is based on the decision in Ontario (Ministry of Community and Social Services, Income Maintenance Branch) v. Henson, [1987] O.J. No. 1121 (H.C.J.). A Henson Trust can be testamentary or inter vivos. The deed in this precedent is drafted as an inter vivos trust. This precedent includes practical guidance and drafting notes. In order for a disabled person to qualify to receive payments under the ODSP certain financial eligibility tests must be met. The asset limit is $40,000 for a single person, $50,000 for a couple and $500 ...