Henson Trust PDF - Reena

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Part OneYou can set up a Henson Trust while you are stillalive with an inter vivos trust agreement, or youcan put a Henson Trust in your will, to be set upafter you die.The current law says ODSP cannot count themoney in a Henson Trust when they do the assettest to decide if your relative is eligible for ODSP.The only money that will affect your relative’seligibility is money that they own and control, ormoney spent to benefit them.When you set up a Henson Trust, the trusteecan spend up to $5,000 on your relative duringany consecutive 12-month period withoutaffecting their ODSP benefits. The $5,000limit is for money given to your relative andmoney spent for their benefit. The trustees canspend money on ‘comforts’ such as a radio ortelevision, clothing, extra food, recreation orentertainment. The trustees could pay part oftheir rent so they could afford a nicer apartmentthan the ODSP shelter subsidy would cover.The trustees could also give your relativespending money. Your relative does not have totell ODSP how they spent this money, but theymust report that they received it.The trustees could also spend additionalamounts for disability-related items andservices, in accordance with MCSS policies.If the trust provides for it, the trustee can spendboth the capital and the income in a HensonTrust.Henson Trustfrom an estate or from insurance benefits, but itis usually simpler and more effective for you toset up the trust in your will for them.Your relative will still qualify for ODSP benefitsas long as there is less than $100,000 inthe Inheritance or Shelter Trust. (If there ismore than one Inheritance or Shelter Trustestablished for them, the total placed in allsuch trusts must total less than $100,000 undercurrent ODSP rules.) Each year, your relativecan be paid all of the income from the Trust, orsome can be reserved by the trustees to meetextra expenses.While the ODSP rules do not say that arecipient with a disability must sign a formaltrust agreement, in general it is a good ideafor them to do so, where the trust has not beenestablished in their parent’s will. The ODSPrules do say that money in the trust must bekept separate from an account controlled solelyby the person with a disability. To make surethat the money in the trust is kept separate, youshould get legal help to prepare a simple trustagreement. It should say who the trustees areand how money in the trust will be handled. Forexample, the trust agreement should say whatthe trustee should do with any income earnedby the trust -- whether the income the trustearns must be given to the person, or whetherit can be added to the capital in the trust tomeet extra expenses in the future.Inheritance Trust or Shelter TrustYou can set up this kind of trust if:• you want your relative to inheritsome money but less than $100,000,or• if you have named your relativeas beneficiary for life insurancebenefits, again less than $100,000.Your relative can even set up this kind of trustafter your death if they inherit under $100,000Page 6
Part twoHenson TrustPart 2: Everything you need to know about ODSPIn Ontario, two social assistance programsgive allowances and benefits to people withlow incomes: Ontario Works and the OntarioDisability Support Program (ODSP). Both ofthese programs are for people under 65 whoneed support. Ontario Works is sometimescalled welfare. It is for people who do not havea disability which has qualified them for ODSP.ODSP is for people with disabilities. Peoplereceiving ODSP benefits do not have to get ajob. They can get more benefits than people onOntario Works.Old Age Security and the Guaranteed IncomeSupplement (OAS /GIS) are the income assistanceprograms for people over the age of 65. Theyare for people across Canada. When people whoreceive ODSP turn 65, they will get benefits fromthe OAS/GIS program. They will continue tohave a modest income. If they have not been inCanada long enough to qualify for OAS/GIS, theymay continue to receive ODSP benefits.What is ODSP?The Ontario Disability Support Program (ODSP)supports adults who need an income and whothe Ontario government has certified as havinga disability. It includes basic income, and somehealth benefits and disability-related supportsincluding a drug card and dental card. ODSPalso provides employment supports. Peoplewho receive ODSP benefits are not required towork to receive ODSP benefits.It is important to understand the rules for ODSP.ODSP has complicated rules about who qualifies.It uses a detailed test of need. Many people withdisabilities and their families find the rules veryconfusing. Some rules are about money. Somerules have nothing to do with money.ODSP was set up in 1998. Before then, socialassistance in Ontario for persons with disabilitieswas called Family Benefits. Under the previousFamily Benefits program, people who weredisabled or blind got slightly higher benefitsthan people who were not disabled. Now, peoplereceiving ODSP typically get about 75% moreeach month than people receiving OW.Who can get ODSP?To qualify for ODSP, a person must• live in Ontario• be 18 or older, and• be a ‘person with a disability’asdefined by ODSP.ODSP looks at the person’s place within afamily. In this handbook, we will mostly discussODSP recipients who are single persons withno dependants. However, about one-quarter ofODSP recipients have spouses or are the headsof families with dependent children. When aperson applies for ODSP benefits, the incomeand assets of their spouse are considered. Insome cases ODSP pays additional amounts forthe spouse as well as the children.Page 7
Page 1 and 2: What you can do to enhancethe quali
Page 3 and 4: IntroductionHenson TrustIntroductio
Page 5: Part Onesettlor can also be the ben
Page 9 and 10: Part twoCertain funds are also exem
Page 11 and 12: Part twoODSP that they have a spous
Page 13 and 14: Part threeHenson TrustPart 3: Setti
Page 15 and 16: Part threeRelieve the trustee of th
Page 17 and 18: Part threeHenson TrustWho couldown
Page 19 and 20: Part three11. What is the Registere
Page 21 and 22: Part fourcollections such as art or
Page 23 and 24: Part fourtrustees can make decision
Page 25 and 26: Part fourA Power of Attorney for Pr
Page 27 and 28: Part fourthe estate to pay to suppo
Page 29 and 30: Part fiveHenson TrustPart 5: Is a H
Page 31 and 32: Part fiveProfiles of families consi
Page 33 and 34: Part sevenTo read about the Registe

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