What Is a Henson Trust?
A Henson Trust is a discretionary trust used in Canada to protect a person with disabilities from losing access to provincial disability benefits. Because the trustee has full discretion over distributions, the beneficiary is not considered to “own” the trust assets for means‑tested programs.
Why Families Use a Henson Trust
1. Protects Disability Benefits
Provincial disability programs (such as ODSP, PWD in BC, AISH in Alberta, etc.) have strict asset and income limits. A Henson Trust keeps assets out of the beneficiary’s name.
2. Provides Supplemental Support
The trust can pay for quality‑of‑life expenses such as:
- Clothing and personal items
- Recreation and travel
- Therapies not covered by government programs
- Education and training
- Household items and furnishings
3. Protects Vulnerable Beneficiaries
The trustee manages the funds, preventing financial abuse or mismanagement.
4. Flexible and Long‑Lasting
The trust can continue for the beneficiary’s lifetime and distribute remaining assets to other heirs afterward.
Key Features of a Henson Trust
- Fully discretionary: The trustee decides if and when money is paid out.
- Beneficiary has no control: This is what protects benefits.
- Can be part of a will or created during life.
- Used across Canada: Recognized in most provinces through case law.
Important Note
Each province has its own rules. A Henson Trust must be drafted carefully to ensure it meets local requirements and does not jeopardize benefits.