Trust Derived from Inheritance (ON)

Summary

This precedent is a Trust Derived from Inheritance. It is a Deed of Trusts that establishes a fully discretionary trust for the benefit of a settlor with a disability. It contains practical guidance, drafting notes, alternate clauses and drafting notes. This Deed of Trust establishes a fully discretionary trust for the benefit of a settlor with a disability, using funds the settlor received from an inheritance or the proceeds of a life insurance policy. If someone who receives Ontario Disability Support Program ("ODSP") benefits receives an inheritance as an outright gift, and not through a Henson Trust, they can protect their entitlement to ongoing ODSP benefits by using this type of trust. The central purpose of a Henson Trust is that the inherited funds do not vest in that beneficiary until the trustee begins a distribution. It is important that planning has been done to prevent the beneficiary receiving the funds outright, which may cause a loss of disability benefits. However, the...