Trust and Henson Trust
A trust can be created as part of your will to hold certain money, property or personal items for people named in your will. These persons can either be people under 18 or an adult, in your opinion, not capable of managing the money or property. You may also create a trust to address tax implications.
When you name a person under the age of 18 as a beneficiary and/or create a trust, you can appoint either the trustee or a named guardian to administer the funds on behalf of the named beneficiary.
Henson trust: Henson trust is a way of providing for your relative or a family member who in your opinion need protection of their inheritance while preserving their eligibility for government benefits. There is no limit on the value of assets or the type of assets that can be subjected to a Henson trust. Henson trusts receive favourable tax treatment since being taxed in the hands of the beneficiary. Ontario Disability Support Program now allows disabled persons to receive $10,000 over a period of 12-month and to personally hold assets of up to $40,000.
Disadvantages of Henson trust: There’s difficulty associated with finding a trustee who is reliable and willing to manage the trust property, especially in the light of the costs involved in administering a Henson trust. The disabled beneficiary has no guarantee or control over the funds in Henson trust. Provincial and territorial governments can impact the functioning of the trust. An improperly drafted trust may disqualify a disabled beneficiary from entitlement to government benefits.
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If you require further assistance in the above matter, please contact us. We are Immigrant-founded, multilingual and accommodating to cater the needs of all walks of life including the working-class community. As experienced professionals, we have been successfully assisting clients in this matter to their satisfaction. Contact us today.