1989
Year Henson Trust established in Ontario law
Henson v. Ontario (Director of Income Maintenance), Ont. Div. Ct.
$40,000
ODSP asset limit for individuals
ODSP Directive 4.1, 2024
$2,500-$5,000
Typical setup cost in Ontario
Ontario disability law practitioners
A Henson Trust is typically established within a parent's will and comes into effect upon their death. The key legal feature is absolute discretion: the trustee is not obligated to make any specific distributions to the beneficiary. This discretionary structure means ODSP cannot count the trust assets as belonging to the beneficiary, even if the beneficiary is the sole named beneficiary of the trust.
The trust can pay for a wide range of expenses that improve the beneficiary's quality of life — specialized therapies, recreational activities, technology, travel, home modifications, personal care items, and more. The trustee must exercise their discretion reasonably and in the beneficiary's best interest, but the broad flexibility is what makes Henson Trusts so valuable for autism families.
Inter vivos (living) Henson Trusts can also be established during the parents' lifetime, which allows other family members to contribute and can provide for situations where the child needs support before the parents' death.
A Henson Trust should be drafted by a lawyer experienced in Ontario disability law and estate planning. The trust document must clearly grant the trustee "absolute and unfettered discretion" over distributions — this specific language is critical for ODSP compliance. Generic trust templates from the internet typically do not contain the precise wording required.
Key decisions during setup include: selecting the trustee (and successor trustees), defining the scope of the trust's investment powers, establishing a mechanism for trustee replacement, and specifying what happens to remaining trust assets when the beneficiary dies (the "remainder" provision).
Costs in Ontario typically range from $2,500 to $5,000 for a will with Henson Trust provisions. Complex situations involving multiple beneficiaries, corporate trustees, or inter vivos trusts may cost more. Some Ontario legal clinics and disability organizations offer reduced-fee estate planning for low-income families.
The most dangerous mistake is language that gives the beneficiary any right to demand distributions. Even a clause stating the trustee "shall provide for the beneficiary's basic needs" can convert the trust into one that ODSP counts as an asset. The discretion must be absolute and unfettered.
Other common errors include: failing to name successor trustees (causing the trust to fall under Public Guardian oversight), not coordinating the trust with RDSP and life insurance beneficiary designations, making trust distributions that duplicate ODSP-covered expenses (which can trigger clawbacks), and not updating the trust when ODSP rules change.
Families should review their Henson Trust provisions every 3-5 years or whenever there is a significant change in ODSP policy, the beneficiary's needs, or the trustee's circumstances.
Henson v. Ontario (Director of Income Maintenance)
1989 CanLII 4151 (ON SC Div Ct) — established absolute discretionary trust doctrine in Ontario
Ontario Ministry of Children, Community and Social Services
ODSP Policy Directives on trusts and exempt assets, updated 2024
Disclaimer:This page provides general information, not financial advice. Consult a qualified financial advisor familiar with disability planning for decisions specific to your family's situation.
Commitment to Accuracy: Our data is verified against official government reports (FAO, MCCSS), peer-reviewed scientific literature, and accessible public records. Last updated: March 24, 2026.
Verified Facts
$200/month, The Canada Disability Benefit provides up to for eligible Canadians with disabilities
88,175, children are registered in the Ontario Autism Program
1 in 50, According to the 2019 Canadian Health Survey on Children and Youth, about children and youth aged 1 to 17 in Canada had an autism diagnosis
23.4%, Only 20,666 children have active funding agreements () — less than one in four
WHO recommends accessible, community-based early interventions for children with autism — timely evidence-based psychosocial interventions improve communication and social engagement