Henson Trust PDF - Reena

Part OneHenson TrustPart 1: How Henson Trusts can support peoplewho receive ODSP benefitsODSP benefits are available to adults in financialneed in Ontario who have mental or physicaldisabilities. Details about the program areoutlined in Part 2.Under the current rules, a single per son who isreceiving ODSP benefits can only have assetsof $5,000 at one time, unless the assets areexempt. If you want to do something to enhancethe life of a relative who receives ODSP, youmust remember two very important rules. Makesure that your relative:• does not have money and non-exemptassets worth more than $5,000 at any timeand• is not given gifts of more than $5,000 inmoney and assets in any twelve monthperiod, unless the gifts are for a disabilityrelateditem or service.Before you give your relative any money, findout how much money and assets they alreadyhave, and how much they have been given asgifts. If their assets are more than $5,000, theymay no longer be eligible for ODSP benefitsuntil they spend the money. If they are givenmore than $5,000 in a 12-month period, it willbe considered income and their ODSP benefitswill be cut by the amount of the extra paymentover $5,000, unless the gifts are for a disabilityrelateditem or service.Your relative is allowed to get more than $5,000if they spend the money on items or servicesPage 4related to their disability. ODSP is generousabout what kinds of expenses are related topeople’s disabilities. To find out what items andservices are allowed, go to: http://www/mcss.gov.on.ca/mcss/english/pillars/social/odspis-directive/ODSP_incomesupport.htmODSP may examine their spending to seewhether it is ‘legitimate’. This means that ODSPcan ask whether the money was spent just tohelp the person qualify for ODSP.A trust can be an ideal solution if you wantto provide some money for a relative. With atrust, your loved one can continue to receiveODSP benefits. The trust money can help withextra expenses such as items and services theyneed, and holidays. The trust can also be anemergency fund in case ODSP benefits are evercut off for any reason.What is a trust?A trust is a legal arrangement where someonesets up an account to help someone else, calledthe beneficiary. The account is in the name ofanother person or persons. These persons, thetrustees, must use the money or assets in thetrust for the benefit of the beneficiary.The person who sets up the trust is called thesettlor. Usually the settlor is a parent, someother relative, or a friend of the beneficiary. A