Henson Trusts and ODSP eligibility

As a resident of Ontario living with a disability, you might face financial or service-related challenges. Fortunately, some programs offer support and assistance. However, it's crucial to understand the rules and regulations surrounding asset limits and inheritance planning. This blog post will guide navigating these issues with confidence and authority.

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So, what exactly is a Henson Trust? It's a trust that offers a legal way to transfer assets to a trustee who will manage it on behalf of the beneficiary, ensuring that they continue to receive government benefits. This Trust is a powerful method for people hoping to give a better life to their loved ones.

To create a Henson Trust, selecting the right trustee is critical. This person is responsible for managing the money and making important financial decisions. They also safeguard the beneficiary from economic criticism, unsophisticated decisions, or manipulation by new acquaintances. To be effective, the Will should include the correct terms to ensure the beneficiary cannot receive the money on demand. Additionally, there's no limit to the value of assets that somebody can place into the Trust, nor is there a limit on the amount provided for the beneficiary's needs. The advantages of Henson Trusts are vast, including the flexibility to enhance the recipient's quality of life without losing out on social benefits. The Trust also gets favorable tax treatment, reducing the tax paid. However, selecting the right trustee, preferably a personal or corporate one, is essential to ensure the funds are handled wisely and ethically.

Potential conflicts of interest exist when a beneficiary passes on, and the trust residue passes on to other siblings. Therefore, choosing the right trustee and tracking tax law changes is vital to comply with regulations while preserving social benefits. The Supreme Court of Canada recently reaffirmed the protective utility of Henson Trusts in January 2019, so it's an excellent opportunity to provide for your family members with disabilities or special needs. Contact our experienced team today and plan your estate with ease.

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