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Protect your disabled family member ODSP eligibility while providing for their future. A complete guide to Henson Trusts, disability benefits planning, and securing long-term financial support.
Protects disability benefits
No asset cap on trust value
Funds used as beneficiary needs
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.
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:
What a Henson Trust Can Provide:
Understanding the risks of direct inheritance and the protection a Henson Trust provides
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.
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.
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.
Understanding the mechanics and legal requirements
For a trust to qualify as a Henson Trust for ODSP purposes, it must meet these criteria:
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.
The trust must be established through the will of a deceased person—it cannot be created during the person lifetime and qualify for the same ODSP exemption (though discretionary trusts during lifetime have different rules).
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.
The trustee must avoid payments that could reduce ODSP:
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.
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."
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.
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.
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.
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.
How to find qualified legal help for disability planning
When selecting a lawyer for Henson Trust planning:
When consulting with a potential lawyer:
Law Society Referrals:
Disability Organizations:
Understanding how trusts interact with estate administration
Assets that flow directly into a Henson Trust through a will generally avoid probate. This means:
The Henson Trust is typically funded through:
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.
Immediate Steps:
Ongoing Tasks:
By Spencer Carroll • Founder, End The Wait Ontario • Last updated: February 22, 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.
Commitment to Accuracy: Our data is independently verified against official government reports (FAO, MCCSS), peer-reviewed scientific literature, and accessible public records. Last updated: February 1, 2026.
Protect your disabled family member ODSP eligibility while providing for their future. A complete guide to Henson Trusts, disability benefits planning, and securing long-term financial support.
Protects disability benefits
No asset cap on trust value
Funds used as beneficiary needs
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.
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:
What a Henson Trust Can Provide:
Understanding the risks of direct inheritance and the protection a Henson Trust provides
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.
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.
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.
Understanding the mechanics and legal requirements
For a trust to qualify as a Henson Trust for ODSP purposes, it must meet these criteria:
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.
The trust must be established through the will of a deceased person—it cannot be created during the person lifetime and qualify for the same ODSP exemption (though discretionary trusts during lifetime have different rules).
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.
The trustee must avoid payments that could reduce ODSP:
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.
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."
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.
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.
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.
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.
How to find qualified legal help for disability planning
When selecting a lawyer for Henson Trust planning:
When consulting with a potential lawyer:
Law Society Referrals:
Disability Organizations:
Understanding how trusts interact with estate administration
Assets that flow directly into a Henson Trust through a will generally avoid probate. This means:
The Henson Trust is typically funded through:
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.
Immediate Steps:
Ongoing Tasks:
By Spencer Carroll • Founder, End The Wait Ontario • Last updated: February 22, 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.
Commitment to Accuracy: Our data is independently verified against official government reports (FAO, MCCSS), peer-reviewed scientific literature, and accessible public records. Last updated: February 1, 2026.