What Is a Henson Trust and How Does It Work in BC?

A Henson trust is a set of trust terms written into a will so a person with a disability can receive a gift or inheritance. The executor or a named trustee holds and manages the money for that person’s care, education and benefit, usually for life. If someone you plan to include in your will has a disability, ask a lawyer whether a Henson trust fits.

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• BC Disability Trusts

Full transcript

What is a Henson trust and how does it work in BC? A Henson trust is found in a will. It is a set of trust terms written into a will by a will-maker so that they can leave a gift or inheritance to a person who has a disability. It appoints the executor or another person named as trustee to receive the funds that are intended for the beneficiary. The executor or trustee is directed to hold and manage those funds for the education, care, and benefit of the person with a disability, usually for their lifetime. There can be additional language written into those clauses as well that might direct whether the trustee can encroach on the capital for the benefit of the beneficiary or naming residual beneficiaries who would receive the remaining trust assets when the beneficiary has died, as well as whether the trustee should have regard to the limitations of the beneficiary’s provincial disability benefits, things like that.

A will-maker who has a beneficiary they want to include in the will who has a current disability might consider then consulting with a lawyer to ensure that the will they are preparing has a Henson trust for that beneficiary. It’s important to get advice so that they can ensure that their estate planning is done to set up benefit for that person in a way that’s responsible and provides for their care and support.

General information, not legal advice.