Guide
A Henson Trust is an absolute discretionary trust where the trustee has complete discretion over when and how funds are distributed to the beneficiary. Because the beneficiary has no legal right to demand distributions, the trust assets are not counted as the beneficiary's assets for ODSP purposes. This allows the beneficiary to maintain eligibility while having access to supplemental funds.
Henson Trusts have specific legal requirements that must be met exactly, or the trust may be deemed invalid and the assets counted against ODSP eligibility. Engage a lawyer who specializes in disability estate planning — not a general practice lawyer. The cost typically ranges from $1,500 to $3,000 and is one of the most important investments you will make.
The trustee manages the trust and makes all distribution decisions. Choose someone who understands your child's needs, is financially responsible, and is likely to outlive you. Consider naming a professional trustee or trust company as a backup. Avoid naming the beneficiary or their spouse as trustee, as this can jeopardize the trust's ODSP protection.
Work with your lawyer to draft the trust document. Key provisions include: the absolute discretionary nature of distributions, trustee succession plans, investment powers, guidelines for how funds should be used (quality of life enhancements, not basic needs already covered by ODSP), and provisions for trust termination and residual beneficiaries.
Most Henson Trusts are funded through your will (testamentary trust). Update your will to direct the inheritance to the Henson Trust rather than directly to your disabled child. Coordinate with RRSP/RRIF beneficiary designations and life insurance policies. Consider an RDSP rollover upon death to maximize tax efficiency.
Inform other family members — especially grandparents and relatives who may leave bequests — about the Henson Trust. Well-meaning relatives who leave money directly to your disabled child could inadvertently jeopardize their ODSP eligibility. Provide them with the trust details so they can direct any gifts or bequests appropriately.
Ontario Disability Support Program Act
Asset exemption rules for absolute discretionary trusts (ontario.ca/laws)
ARCH Disability Law Centre
Legal resources on trusts and estate planning for persons with disabilities
Written by Spencer Carroll
Founder & Autism Advocate
Evidence on this page
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$200/month
The Canada Disability Benefit provides up to for eligible Canadians with disabilities
89,799
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%
Only 20,633 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