Google | Generative AI
Generated on June 24th, 2025
A Henson Trust, also known as an Absolute Discretionary Trust, is a financial planning tool designed to help individuals with disabilities.
It allows a trustee to manage assets for a beneficiary with a disability without affecting their eligibility for government benefits like the Ontario Disability Support Program (ODSP). The key feature is that the beneficiary doesn’t have direct legal claim to the trust assets, preventing them from being counted as personal assets when determining eligibility for government assistance.
- Purpose:
Henson Trusts are primarily used to provide financial support to individuals with disabilities, ensuring they can benefit from inheritances or other financial gifts without losing access to essential government benefits. - Discretionary Nature:
The trust is discretionary, meaning the trustee has the power to decide how and when to distribute funds to the beneficiary. - Asset Protection:
The trust’s assets are not considered the beneficiary’s assets, so they don’t impact the beneficiary’s eligibility for government assistance programs. - Legal Framework:
Henson Trusts are typically established within a will or as a separate trust document. - Beneficiary’s Role:
The beneficiary can provide input to the trustee’s decision-making but does not have unilateral control over the trust assets.
The term “Henson Trust” comes from a landmark Ontario case, in which the courts ruled that assets held in a discretionary trust were not considered part of the beneficiary’s assets for ODSP purposes.
Generative AI is experimental. For legal advice, consult a professional.
Google | Generative AI | Prompt: “What is a Henson Trust?”
