$200/month
The Canada Disability Benefit provides up to $200/month for eligible Canadians with disabilities
Direct answer
Protect your disabled family member ODSP eligibility while providing for their future.
ODSP Directive 4.7: Funds held in trust · Verified 2026-08-10
Henson Trust at a glance
- ODSP Safe
- Protects disability benefits
- No Limits
- No asset cap on trust value
- Flexible
- Funds used as beneficiary needs
In brief
Quick Summary
- Henson Trust guide for Ontario autism families: protect ODSP eligibility
- Preserve inheritance & secure your child
The financial reality
Families bear costs the programme was designed to cover.
Ontario's figures, as of May 2026 (MCCSS FOI via OAC · May 2026).
Registered
91,974Children registered
Total registered in the Ontario Autism Program
Funded
20,711Have active funding
22.5% of registered children
Without active agreement
71,263Without an active funding agreement
An administrative status; it does not confirm current service delivery.
Show as table
| Metric | Value |
|---|---|
| Children registered | 91,974 |
| Have active funding | 20,711 |
| Without an active funding agreement | 71,263 |
What is a Henson Trust?
A Henson Trust is a specific type of discretionary trust created through a will that allows parents or family members to leave assets to a person with a disability without affecting their eligibility for Ontario Disability Support Program (ODSP) benefits.
Key Features of a Henson Trust
- Discretionary:
- The trustee decides when and how much money to distribute, the beneficiary has no legal right to demand funds
- ODSP Exempt:
- Trust assets are not counted toward ODSP asset limits because the beneficiary cannot access them directly
- Created by Will:
- The trust is established through the will and takes effect upon death
- Ontario-Specific:
- Based on the 1987 Ontario court case Re Henson that established this disability planning tool
Why the Henson Decision Matters
In Re Henson (1987), the Ontario court ruled that assets in a properly structured discretionary trust do not belong to the beneficiary for ODSP purposes because the beneficiary cannot compel the trustee to make payments. This legal precedent is the foundation of all Henson Trust planning in Ontario today. Without this ruling, any inheritance would disqualify a disabled person from receiving ODSP benefits until the inheritance was spent down.
What a Henson Trust Protects:
- ✓ ODSP eligibility for income support
- ✓ ODSP eligibility for drug benefits
- ✓ ODSP eligibility for dental benefits
- ✓ Future financial security
- ✓ Quality of life enhancements
What a Henson Trust Can Provide:
- ✓ Home maintenance and repairs
- ✓ Medical expenses not covered by ODSP
- ✓ Education and training programs
- ✓ Recreational activities and vacations
- ✓ Caregiver support and respite
WHY IT MATTERS
Why Disability Benefits Planning Is Critical
Understanding the risks of direct inheritance and the protection a Henson Trust provides
The Risk of Direct Inheritance
If you leave money directly to a disabled family member who receives ODSP, they may lose their benefits until the inheritance is spent down to ODSP asset limits ($5,000 for most recipients). This means losing monthly income, drug coverage, dental benefits, and other essential supports, often precisely when they are most vulnerable due to the loss of their family caregiver.
The Henson Trust Solution
A properly structured Henson Trust keeps assets out of the beneficiary direct control. Because the beneficiary cannot access the trust funds at will, only the trustee can decide to make distributions, the assets are not counted toward ODSP limits. Your loved one continues receiving ODSP income and benefits while the trust provides supplementary support for their additional needs.
Especially Critical for Autism Families
Autistic adults often require lifelong support and may never be financially independent. When parents can no longer provide care due to aging or death, ODSP becomes the primary income source. A Henson Trust ensures that family resources can supplement ODSP without triggering benefit loss, providing for a better quality of life while preserving essential government support.
HOW IT WORKS
How a Henson Trust Functions
Understanding the mechanics and legal requirements
Three Essential Requirements
For a trust to qualify as a Henson Trust for ODSP purposes, it must meet these criteria:
- 1
Fully Discretionary
The trustee must have absolute discretion to decide whether to make distributions, how much, and for what purpose. The beneficiary cannot have any legal right to compel payments.
- 2
Trust terms matter
“There are a variety of trusts and the impact on ODSP (Ontario Disability Support Program) will depend on the terms of the trust.” ODSP Directive 4.7
- 3
Beneficiary Has No Control
The disabled beneficiary cannot be the trustee, cannot direct trustee decisions, and cannot have the power to revoke or amend the trust. Any control or entitlement could cause ODSP to treat the trust assets as available resources.
What the Trust Can Pay For
- • Home repairs and maintenance
- • Medical and dental expenses (above ODSP coverage)
- • Assistive devices and equipment
- • Education and skill development
- • Recreational activities and travel
- • Caregiver support and respite services
- • Clothing and personal needs
- • Vehicle purchase or modifications
Trust Payment Restrictions
The trustee must avoid payments that could reduce ODSP:
- • Direct cash gifts may reduce ODSP income support
- • Food and shelter payments trigger ODSP reductions
- • Payments must be supplemental to ODSP, not replacing it
- • Trustee should document how payments benefit the beneficiary
LEGAL REQUIREMENTS
Legal Requirements for a Valid Henson Trust
Essential elements that must be included in the trust document
Important Legal Notice: The following information is for educational purposes only and does not constitute legal advice. Henson Trusts are complex legal instruments that must be properly drafted to ensure ODSP exemption. Errors in trust wording can result in loss of disability benefits. Always consult a lawyer experienced in disability and Henson Trust planning.
Required Trust Provisions
Discretionary Distribution Clause
The trust must clearly state that the trustee has absolute and unfettered discretion to decide whether to make any distribution, the amount, and the timing. Sample language: "The trustee may in their absolute discretion pay or apply the whole or any part of the net income and capital of the trust to or for the benefit of the beneficiary."
No Entitlement Provision
The trust must specify that the beneficiary has no legal right to demand payments and cannot compel the trustee to make distributions. This is what keeps the assets exempt from ODSP calculations.
Survivorship Clause
The trust should specify what happens to remaining assets when the disabled beneficiary dies (typically named alternate beneficiaries such as siblings or charities). The trust continues until all assets are distributed.
Trustee Powers and Instructions
The trust should grant the trustee broad powers to manage investments, file taxes, and make decisions in the beneficiary best interest. Many families include a letter of wish (non-binding guidance) to help trustees understand the family intentions.
ODSP Compliance Reference
The trust should reference ODSP requirements and state that it is intended to qualify as an exempt discretionary trust under ODSP regulations. This helps ensure the trustee understands the ODSP implications of their decisions.
FINDING A LAWYER
Finding a Henson Trust Lawyer in Ontario
How to find qualified legal help for disability planning
What to Look For
When selecting a lawyer for Henson Trust planning:
- Experience with disability trusts: Ask specifically about Henson Trusts and ODSP planning experience
- Knowledge of current ODSP rules: ODSP regulations change, your lawyer should be up to date
- Estate planning focus: Look for lawyers who focus on wills and estates, not general practitioners
- Understanding of autism needs: Experience with families of autistic individuals is valuable
- Clear communication: They should explain complex concepts in plain language
Questions to Ask
When consulting with a potential lawyer:
- • How many Henson Trusts have you drafted?
- • Are you familiar with current ODSP asset and income rules?
- • How do you handle trustee selection and guidance?
- • What is included in your fee (drafting, consultations, updates)?
- • Do you offer a sliding scale for families with limited means?
- • How do you ensure the trust remains compliant if ODSP rules change?
- • Can you provide references from other disability families?
Where to Find Lawyers
Law Society Referrals:
- • Law Society of Ontario Referral Service
- • Ontario Bar Association (Estate Planning Section)
- • Special Needs Ontario (lawyer directory)
Disability Organizations:
- • Autism Ontario (may have lawyer recommendations)
- • Community Living Ontario
- • PLAN Toronto (planned lifetime advocacy network)
PROBATE & ESTATE
Probate Considerations for Henson Trusts
Understanding how trusts interact with estate administration
Avoiding Probate
Assets that flow directly into a Henson Trust through a will generally avoid probate. This means:
- • Faster distribution to beneficiary
- • Lower estate administration costs
- • Privacy (probate is public, trusts are not)
- • Avoids Estate Administration Tax
Funding the Trust
The Henson Trust is typically funded through:
- • Life insurance proceeds (direct to trust)
- • RRSP/RRIF beneficiary designations
- • Specific bequest in the will
- • Residual estate after other gifts
Estate Planning Strategy
Many families use a combination of strategies to maximize protection and minimize costs:
Primary Residence
Can often pass directly to disabled beneficiary without affecting ODSP if they occupy it as their principal residence.
Life Insurance
Naming the Henson Trust as beneficiary directly avoids probate and provides immediate liquidity.
RRSPs/RRIFs
Can be rolled tax-free to dependent disabled child, consider whether this or trust funding makes more sense.
TFSA
Tax-free growth account can name trust as beneficiary to provide additional tax-advantaged funds.
Frequently Asked Questions
A Henson Trust is specifically designed to comply with ODSP exemption rules for discretionary trusts. The key difference is that in a Henson Trust, the beneficiary has absolutely no entitlement to trust assets, only the trustee can decide to make payments. Regular trusts may give beneficiaries more control or mandatory distributions, which would cause ODSP to count the assets against eligibility limits. The Henson Trust wording is carefully crafted to ensure ODSP exemption.
A true Henson Trust is created through a will and takes effect upon death. However, you can do planning during your lifetime, including drafting the will provisions that will create the Henson Trust. For lifetime planning, you might consider an RDSP (Registered Disability Savings Plan) which provides government grants and bonds while protecting future assets. Some families also use discretionary trusts during lifetime, but the rules are different from the post-death Henson Trust structure.
The trustee should be someone trustworthy, financially responsible, and understanding of the beneficiary needs. Common choices include: (1) Siblings or other family members who can be actively involved, (2) Close family friends who have known the beneficiary for years, (3) Professional trustees such as trust companies or lawyers, (4) A combination of the above as co-trustees. Many families name multiple trustees to provide checks and balances and ensure continuity. Consider naming successor trustees in case your first choice cannot serve.
There is no dollar limit on how much can be held in a Henson Trust. Unlike RRSPs or TFSAs, there is no maximum contribution limit. You can leave essentially any amount to a Henson Trust without affecting the beneficiary ODSP eligibility. However, practical considerations include: the amount needed to maintain the beneficiary quality of life for their expected lifetime, the tax implications of trust investment income, and whether smaller amounts might be better placed in an RDSP for government matching.
Yes, Henson Trusts are taxable entities. Investment income earned in the trust is taxed at the highest marginal rate. However, there is a tax attribution rule: income paid or payable to the disabled beneficiary can be included in their tax return instead, which may be at a lower rate if they have little other income. The trust can also claim the disability tax credit if the beneficiary qualifies. Many families use tax-efficient investments (like capital-gains-focused funds) to minimize annual tax drag within the trust.
ODSP rules can change, and some families worry about future rule changes affecting their planning. However, the Henson Trust structure has been recognized in Ontario since 1987 and has survived multiple ODSP policy reviews. The fundamental principle, that a beneficiary cannot be forced to use trust assets for basic support if they cannot demand distributions, is well-established in law. It is still wise to review your estate plan every 5 years or if there are major policy changes, and work with a lawyer who stays current on ODSP developments.
Absolutely. Many families use both tools for comprehensive planning. An RDSP can receive lifetime grants and bonds of up to $70,000 and $20,000, respectively (limits as commonly cited; confirm current limits with ESDC). A Henson Trust can hold larger inheritances, including life-insurance proceeds, without using the RDSP contribution room. Coordinate both tools with an Ontario disability-planning professional.
Start planning as soon as you have a disabled family member who may need ongoing support. While the Henson Trust itself is created through your will, the planning should happen well before death, ideally as soon as you have a diagnosis or understanding that long-term support will be needed. This gives you time to: properly fund the trust (through life insurance or savings), choose appropriate trustees, discuss plans with family members, and adjust as circumstances change. Don wait until a health crisis, planning while healthy ensures better decisions.
CRITICAL CONSIDERATIONS
Key Legal Considerations for Families
Essential Legal Warnings
- DIY is dangerous: Template wills or online kits may not include proper Henson Trust wording. Errors can cause loss of ODSP benefits.
- Beneficiary designation matters: Life insurance and RRSPs must be coordinated with the trust to avoid unintended consequences.
- Trustee selection is critical: The wrong trustee can mismanage funds or make decisions contrary to your intentions.
- ODSP rules change: Planning should be reviewed periodically to ensure ongoing compliance.
- Communication is key: Tell potential trustees about your plans and ensure they willing to serve.
- Sibling considerations: Think about how to balance the needs of all children while providing extra for the disabled child.
- Guardianship issues: If your disabled child needs guardianship, this is separate from the trust but equally important.
- Document everything: Leave clear guidance for trustees through a letter of wish (non-binding but helpful).
Planning Checklist for Families
Immediate Steps:
- ☐ Consult an estate planning lawyer
- ☐ Assess long-term care needs
- ☐ Review existing wills and beneficiaries
- ☐ Consider life insurance needs
Ongoing Tasks:
- ☐ Review plan every 5 years
- ☐ Update after major life events
- ☐ Communicate with chosen trustees
- ☐ Monitor ODSP rule changes
By Spencer Carroll • Founder, End The Wait Ontario • Last updated: September 28, 2026
This guide is for educational purposes only and does not constitute legal advice. Henson Trusts are complex legal instruments. Always consult a lawyer experienced in disability and estate planning for advice specific to your situation.
Help End the Wait
- Ministry of Children, Community and Social Services: Spending Plan Review (2024). Financial Accountability Office of Ontario (2024)
- MCCSS Ontario Autism Program figures, May 13, 2026, obtained by the Ontario Autism Coalition under Freedom of Information. Ministry of Children, Community and Social Services (Ontario), obtained by the Ontario Autism Coalition (May 13, 2026)
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Facts3
Sources3
91,974
children are registered in the Ontario Autism Program
1 in 50
According to the 2019 Canadian Health Survey on Children and Youth, about 1 in 50 children and youth aged 1 to 17 in Canada had an autism diagnosis
Last system verification: 2026-08-10. Next scheduled update: 2026-11-05.
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