As a caregiver of a disabled dependent, one of the most important decisions you will make is how to plan for their financial future. Fortunately, there is a unique estate planning tool that can provide a safety net for your loved one without affecting their government benefits - a Henson Trust. This article will dive deeply into everything you need to know about Henson Trusts and how they can benefit you and your loved ones.
Named after a landmark Ontario case, Henson Trusts are specifically designed to protect the financial interests of disabled beneficiaries. By providing a safety net, Henson Trusts give you peace of mind in knowing that your loved one is cared for even after you're gone.
A Henson Trust is a discretionary trust, meaning the trustee has complete control over how and when the trust's assets are distributed. By doing so, the beneficiary's eligibility for government benefits is not affected, as the assets in the trust are not considered their own. This allows for the trust assets to be distributed based on necessity, ensuring your loved one is provided for in the best way possible.
To establish a Henson Trust, it is fundamental to seek legal expertise. The trust document must clearly state the trustee's discretion; the chosen trustee should be capable of managing the trust's assets. The funding of the trust should be carefully examined, ensuring that it is a solution in the long run and sufficient to meet the needs of your disabled dependent.
Setting up a Henson Trust is a complex process and can significantly impact the financial future of your loved one. Seeking professional advice can help steer you through the intricacies of estate planning and ensure that the trust is set up correctly and effectively, providing you with peace of mind.
If you're responsible for a disabled dependent, planning for their future is crucial. Using Henson Trusts, you can ensure the person you care for has financial security while retaining their eligibility for government benefits. With professional legal guidance, you can set up a Henson Trust that provides a safety net to your loved one, even after you're gone. Ensure you plan for your dependant's future welfare, and take advantage of Henson Trusts today!
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