[Case Study]


When children reach adulthood, parents can relax knowing they now have the skills to be self-sufficient regardless of parental support.

What happens when your adult child is disabled and will never be able to provide necessary care for their needs?

I have built custom solutions for many clients experiencing the frustrating challenge of knowing their adult children with disabilities would be penalized by an inheritance as it would interfere with their much-needed income support. Money or property inherited can affect eligibility, especially if it exceeds the threshold of exempt income. In Ontario, that is any cumulative amount that exceeds $10,000 in a 12-month period. If you inherit assets, they too can affect eligibility. Estate planning is imperative to protect adult children who cannot provide for themselves because of disability.  The best solution is to use a Henson Trust. The first Henson Trust was created by Leonard Henson for his disabled daughter Audrey. The Ministry of Social Services tried to have the trust considered as income. Because of the distinct nature of this type of trust, the courts ruled in the Henson family‚Äôs favour and it is now accepted in all of the provinces, including Quebec.

The Henson Trust is the most effective tool for protecting assets for a disabled child. It:

  • Can prevent claw backs in disability income now and in the future.
  • Has a trustee to ensure the money is properly invested and disbursed.
  • Allows for a secondary beneficiary in the event the assets outlive the original beneficiary.
  • Creates financial support for extra cost of living for the disabled adult child.

Using a Henson Trust, Insurance Trust and/or Estate Equalization is imperative for the comfort and protection of your family in succession planning. Please feel free to contact me for a discussion around your personal estate planning needs.

I am here to build and protect your wealth with passion, strength and integrity!

Whitney Hammond, CFP, CLU
905-637-3500 ext. 224