Henson Trusts for Disabled Beneficiaries in BC

Henson Trusts for Disabled Beneficiaries in BC – Insights from Estate Lawyer Tim Louis

By Estate Lawyer Tim Louis

If you have a loved one living with a disability, estate planning must balance compassion with legal precision. Families often worry about how to leave an inheritance without putting vital disability benefits at risk. In British Columbia, a Henson Trust is one of the most effective tools to protect both financial stability and quality of life for a disabled beneficiary.

A Henson Trust is a special type of discretionary trust. It allows you to provide long-term support for your loved one while ensuring they remain eligible for government disability assistance programs. Unlike a standard inheritance, funds placed in a Henson Trust are managed by a trustee who has full discretion over distributions. This structure means your loved one receives the benefit of your estate without losing essential medical and financial supports.

At Tim Louis & Company, we understand how important it is to create security for your family while preserving dignity and independence. With the right plan, you can be confident your estate will protect—not disrupt—the future of those you care for most.

Protect Your Loved One’s Future — Book a Free Consultation

What is a Henson Trust?

A Henson Trust is a type of discretionary trust designed to protect the inheritance of a person living with a disability. Unlike a standard trust, the beneficiary of a Henson Trust has no legal right to demand payments. Instead, the trustee has full discretion over when and how funds are distributed. This discretionary structure is what allows the beneficiary to maintain eligibility for government disability benefits such as BC’s Persons with Disabilities (PWD) program.

The concept originates from the landmark Ontario case Henson v. Ontario (Director of Income Maintenance, 1989). In that case, the court ruled that because the disabled beneficiary could not compel payments, the trust assets could not be counted against her when determining eligibility for government assistance. This precedent gave rise to what is now known across Canada as the Henson Trust.

What sets a Henson Trust apart from an ordinary trust is its protective function. In a regular trust, distributions may be required at set times or in set amounts, potentially disqualifying a beneficiary from much-needed disability supports. A Henson Trust, by contrast, ensures that funds are available for extras—such as improved quality of life, medical equipment, or housing—while core government benefits remain intact.

In British Columbia, Henson Trusts are recognized as a crucial estate planning tool for families who want to provide for a disabled loved one without risking their financial security.

Why Henson Trusts in BC

In British Columbia, many families rely on the Persons with Disabilities (PWD) program to provide essential financial and medical support for a loved one living with a disability. According to the BC Government’s Disability Assistance program, eligibility depends on strict asset and income limits. An inheritance received directly by a person with PWD status can easily exceed these thresholds, resulting in the suspension or loss of benefits.

This is where a Henson Trust becomes indispensable. By placing assets into a trust that is fully discretionary, the beneficiary never has control or ownership of the funds. Since the trustee decides when and how to make distributions, the Ministry cannot count the trust as part of the beneficiary’s personal assets. This ensures continued access to vital disability assistance while still allowing the family’s inheritance to enhance quality of life.

Without a Henson Trust, families may unintentionally jeopardize a disabled heir’s long-term financial stability. Even a modest inheritance can interrupt monthly disability payments, medical coverage, and supplementary benefits. Reinstating those benefits can be complex, stressful, and sometimes impossible.

Henson Trusts provide peace of mind. They give families confidence that their planning will protect, not disrupt, the future security of their loved ones. For individuals with disabilities, it means maintaining dignity, independence, and financial stability — while still benefiting from the legacy left behind.

Q: Does a Henson Trust protect disability benefits in BC?
A: Yes. A properly drafted Henson Trust ensures that assets do not count toward a beneficiary’s financial eligibility for provincial disability assistance, allowing them to keep essential PWD benefits while receiving long-term support.

How a Henson Trust Works

A Henson Trust is built on a simple but powerful principle: the assets placed inside the trust are not legally considered the property of the beneficiary. This is achieved through the full discretion granted to the trustee.

Trustee’s Role and Discretion

The trustee has absolute control over the trust. They decide if, when, and how much money is distributed to the disabled beneficiary. Because the beneficiary cannot demand funds or require distributions, government agencies such as the BC Ministry of Social Development and Poverty Reduction cannot treat the trust’s assets as belonging to the beneficiary. This preserves eligibility for the Persons with Disabilities (PWD) program and other supports.

Beneficiary Protection

Without this discretionary structure, an inheritance could be treated as income or assets in the beneficiary’s name — potentially disqualifying them from PWD assistance. With a Henson Trust, however, the funds are available to improve quality of life without undermining essential benefits. The trust acts as a financial safety net that sits alongside, not in place of, provincial support.

Funding Options

A Henson Trust can be created and funded in several ways:

Through a will – ensuring an inheritance is directed into the trust rather than to the beneficiary directly.
Through life insurance – by naming the trust as the policy beneficiary.
Through estate assets – allocating accounts, property, or investments into the trust.

Each method gives families flexibility in planning how to protect their loved one’s future.

Putting It All Together

In practice, a Henson Trust often provides for “extras” that disability benefits do not cover: enhanced housing, medical equipment, therapies, or travel. This allows a disabled heir to live with greater comfort and dignity, while continuing to receive crucial government benefits.

Benefits of a Henson Trust

A Henson Trust offers families more than legal protection — it provides peace of mind. By shielding assets from being counted as a disabled person’s property, it allows beneficiaries to preserve their disability benefits while still receiving the support of an inheritance. This ensures that essential programs, like BC’s Persons with Disabilities (PWD) assistance, remain intact.

Beyond benefit preservation, a Henson Trust creates long-term financial security. Families can be confident that resources will be available for housing, medical needs, therapies, or other life-enhancing supports. Because the trustee controls when and how funds are used, money is managed responsibly and lasts longer.

A well-drafted Henson Trust also helps reduce family disputes. By clearly outlining the role of the trustee and the purpose of the trust, it minimizes the risk of conflict among heirs and provides legal certainty during what can otherwise be a difficult time.

Most importantly, a Henson Trust supports the dignity and independence of a person living with a disability. It ensures that they can enjoy a better quality of life, without the fear of losing government assistance or becoming financially vulnerable.

Speak with Tim Louis & Company about how a Henson Trust can safeguard your family’s future.

Risks and Considerations

While a Henson Trust is a powerful estate planning tool, it is not without challenges. Families must carefully weigh the following considerations to ensure the trust functions as intended.

Trustee Selection

Choosing the right trustee is critical. Since the trustee has full discretion over how and when to distribute funds, they must be trustworthy, financially responsible, and committed to acting in the beneficiary’s best interests. Poor trustee selection can lead to mismanagement or family conflict.

Legal Drafting Errors

Henson Trusts must be drafted with precision. If the wording does not clearly establish the discretionary nature of the trust, government agencies could treat the assets as belonging to the beneficiary — jeopardizing disability benefits. Working with an experienced lawyer is essential to avoid these mistakes.

Compliance with BC Law

Although recognized across Canada, Henson Trusts must comply with British Columbia’s estate and trust laws. Local statutes and case law can affect how the trust is interpreted. Without proper compliance, the protective features may be weakened.

Need for Regular Review

Laws and government benefit programs evolve. A Henson Trust that works today may require adjustments in the future. Families should review their estate plans regularly to ensure continued protection.

Q: Who should act as trustee for a Henson Trust?
A: A trustee should be a reliable individual or institution who can manage funds responsibly, act impartially, and always prioritize the disabled beneficiary’s best interests.

Henson Trust vs Other Planning Tools

When planning for the future of a disabled beneficiary, families often compare different financial and legal tools. While each option can play a role in estate planning, a Henson Trust offers protections that others cannot.

Registered Disability Savings Plan (RDSP)

An RDSP is a government-registered savings plan that allows families to set aside money for a person with a disability. Contributions can grow tax-deferred, and the plan may qualify for government grants or bonds. However, RDSPs have strict rules about withdrawals, age limits, and maximum contribution periods. Unlike a Henson Trust, funds in an RDSP are considered an asset of the beneficiary and may impact eligibility for certain benefits if withdrawals are not carefully managed.

Other Discretionary Trusts

A standard discretionary trust can also allow a trustee to decide how funds are distributed. However, if it is not structured with the specific protective features recognized in Henson v. Ontario, the assets may still be considered available to the beneficiary. The Henson Trust is unique because the beneficiary has no enforceable right to demand payment — the key feature that preserves disability benefits.

Joint Accounts

Some families attempt to use joint accounts with a parent or sibling to manage funds for a disabled loved one. While simple in appearance, joint accounts are risky. They expose funds to the joint owner’s creditors, divorce proceedings, or estate disputes after death. They also lack the clear legal protections and accountability built into a Henson Trust.

Q: What’s the difference between a Henson Trust and an RDSP?
A: An RDSP is a government savings plan with grants and strict rules on contributions and withdrawals, while a Henson Trust is a discretionary trust that protects eligibility for disability benefits by keeping assets out of the beneficiary’s control.

Case Example: Protecting a Loved One’s Future

Consider a Vancouver family with an adult daughter, Emily, who receives Persons with Disabilities (PWD) benefits. Her parents want to ensure that when they pass away, Emily is financially secure — but they are worried that a direct inheritance could disqualify her from provincial assistance.

Working with their estate lawyer Tim Louis, they establish a Henson Trust in their wills. Instead of leaving money directly to Emily, they direct the inheritance into the trust. A trusted family friend is appointed as trustee, with full discretion over how and when to provide financial support.

After her parents’ passing, Emily continues to receive her PWD benefits because the inheritance is not considered her personal asset. At the same time, the trustee can use the trust to pay for extras: improved housing, therapies, medical devices, and even small luxuries that enhance her quality of life.

This planning strategy — recommended by advocacy organizations such as Disability Alliance BC — allows families to protect government benefits while still providing meaningful financial support.

Plan Ahead with Confidence — Free Consultation

How Tim Louis & Company Can Help

At Tim Louis & Company, we bring over 40 years of experience helping Vancouver families navigate the complexities of estate planning, wills, and disability law. Our firm understands that planning for a loved one with a disability requires both legal precision and compassion. Every family situation is unique, and we take the time to create tailored solutions that safeguard benefits, reduce risks, and promote dignity and independence.

We have successfully guided many families through the process of setting up Henson Trusts, ensuring their loved ones remained eligible for Persons with Disabilities (PWD) benefits while still receiving meaningful financial support.

“Found Tim to be very knowledgeable at helping us to protect the financial future of our daughter with special needs.” — Phyllis Siu, ★★★★★ Google review

When you work with Tim Louis & Company, you can expect clear advice, proven strategies, and unwavering support every step of the way.

Book Your Free Consultation Today

Do You Need an Estate Lawyer in Vancouver?

Do You Need an Estate Lawyer in Vancouver? Here’s How to Know

Wondering if it’s time to speak with an estate lawyer in Vancouver? Whether you’re creating a Will, administering a loved one’s estate, or facing a dispute over inheritance, the right legal advice can protect your family, honour your wishes, and prevent costly mistakes. In this guide, we’ll walk you through when to seek help, how BC law applies, and what to expect from working with a compassionate, experienced estate lawyer like Tim Louis.

By Tim Louis

Why Estate Law Matters in British Columbia

Estate planning may not be top of mind when life is busy, but in British Columbia, the stakes are too high to ignore. Whether you’re writing a Will, managing a loved one’s estate, or navigating a dispute, the decisions you make today can impact your family for generations.

BC’s unique legal framework — including the Wills, Estates and Succession Act (WESA) — gives the courts broad power to vary a Will. That means even carefully written estate plans can be challenged, delayed, or overturned without proper legal guidance. For families, this can result in costly court battles, emotional rifts, and years of uncertainty.

An experienced estate lawyer helps you make sense of the law, protect your wishes, and guide your family with clarity when it matters most. It’s not just about documents — it’s about peace of mind.

What an Estate Lawyer Actually Does in BC

Many people assume that an estate lawyer simply helps draft Wills. In reality, their role goes far deeper—especially in a province like British Columbia where estate laws are complex and highly regulated under WESA.

Here’s what an estate lawyer can help you with in BC:

✔ Drafting and Updating a Will – A legally sound Will ensures your assets are distributed according to your wishes and reduces the risk of family disputes.

✔ Creating Power of Attorney and Representation Agreements – These important documents protect you if you become incapacitated and need someone to make decisions on your behalf.

✔ Establishing Trusts – Trusts can be used to protect beneficiaries, reduce taxes, and manage complex or blended family situations.

✔ Advising Executors and Beneficiaries – If you’re named as an executor, a lawyer helps you meet legal responsibilities like applying for probate, notifying beneficiaries, and distributing assets properly.

✔ Handling Estate Disputes – Estate lawyers also represent individuals in litigation, including will variation claims, undue influence allegations, or challenges to capacity.

Estate law isn’t one-size-fits-all. In BC, it takes insight and experience to ensure your legacy is protected and your loved ones are taken care of.

5 Signs You Should Hire an Estate Lawyer in Vancouver

Not sure if you really need a lawyer? You’re not alone. But in many cases, legal guidance can save your family from future stress, unexpected costs, or even litigation.

Here are five signs it’s time to talk to an estate lawyer:

You Have a Blended Family
If you have children from a previous relationship or stepchildren you wish to include, BC’s estate laws may not honour your intentions without a proper estate plan.
You Own Property or a Business
Real estate, rental properties, or small businesses add layers of complexity that require careful legal planning to avoid tax issues or probate delays.
You Want to Prevent Disputes
Wills can be challenged in BC—especially by spouses or children who feel left out. A lawyer helps draft your documents in a way that reduces the risk of future legal battles.
You’ve Been Named as Executor
Executors carry legal liability. If you’ve been asked to manage an estate, a lawyer can help ensure every step is handled properly and in compliance with the law.
You’re Caring for Someone with a Disability or Vulnerability
Special trusts, representation agreements, and advanced planning can protect vulnerable beneficiaries without jeopardizing benefits or supports.

When the stakes are high, legal advice isn’t just helpful—it’s essential. A short consultation today could save your family from years of uncertainty.

Estate Planning vs. Estate Litigation — How Legal Guidance Helps

In British Columbia, estate planning and estate litigation might sound like opposite ends of the legal spectrum — one proactive, one reactive. But they’re deeply connected, and both benefit from sound legal advice.

Estate Planning is the process of preparing for the future. It involves drafting documents like wills, trusts, and powers of attorney to ensure your wishes are clearly documented and legally enforceable. When done properly, it can:

Protect loved ones from confusion or conflict
Minimise taxes and probate costs
Account for unique family dynamics, including blended families or dependents with special needs
Reduce the chance of someone challenging your will under BC’s Wills, Estates and Succession Act (WESA)

Estate Litigation happens when something goes wrong. A Will is challenged. An executor is accused of misconduct. A beneficiary believes they’ve been treated unfairly. These disputes are emotionally and financially draining — and all too common in BC’s flexible estate law environment.

By working with an experienced estate lawyer early, you dramatically reduce the risk of litigation later. And if a conflict does arise, having trusted legal guidance ensures your rights are protected and the process moves forward efficiently.

Real Results – What Clients Say About Tim Louis

Estate planning isn’t just about documents — it’s about peace of mind. And when families across Vancouver need trusted legal guidance for wills, probate, or planning for the future, they turn to Tim Louis.

Here’s what some of his clients have said:

“Tim and his assistants prepared my will with efficiency and empathy. I was very pleased with the service.”
— Dennis H.

“I highly recommend Tim Louis and Company. Tim helped me in a number of different situations — primarily wills and estate. Thoughtful, kind, and clear with his advice.”
— Sue S.

“I asked Tim to do my will. Great service — thanks so much Tim. Highly recommend.”
— Jean S.

“My husband and I had our wills updated by Tim and his very capable staff. We were very pleased with the quality of the service.”
— Daphne D.

“Tim helped us protect the financial future of our daughter with special needs. He is very ethical and has a brilliant mind.”
— Phyllis S.

With four decades of experience and a reputation for compassionate, client-first service, Tim Louis makes estate planning feel less daunting — and more empowering.

Take Action Today – Request a Free Consultation

Planning your estate is one of the most important steps you can take to protect your family’s future — and you don’t have to navigate it alone.

Whether you’re preparing your first Will, updating an estate plan, or managing a loved one’s estate through probate, Tim Louis is here to help. With over 40 years of experience serving individuals and families across Vancouver and British Columbia, you can trust his guidance to be both compassionate and legally sound.

📞 Call (604) 732-7678 today for a free consultation.
✉️ Or email timlouis@timlouislaw.com to take the first step toward peace of mind.

Your legacy matters. Let’s make sure it’s protected.

Frequently Asked Questions – Do You Really Need an Estate Lawyer in BC?

When should I hire an estate lawyer in British Columbia?

You should consider hiring an estate lawyer if:

You have a blended family or complex family structure
You own multiple properties or businesses
You’re concerned about will disputes or wills variation claims
You want to ensure your wishes are followed and avoid costly court battles

Can I write my own will in BC without a lawyer?

Yes, British Columbia allows handwritten or online wills under the Wills, Estates and Succession Act (WESA). However, without legal advice, there’s a high risk the will could be invalid or contested, especially in complex situations.

What does an estate lawyer actually do?

An estate lawyer:

Drafts wills, trusts, and powers of attorney
Helps with tax planning, blended family protection, and inheritance strategies
Advises on executor duties and probate
Prevents or resolves estate disputes with legally sound guidance

How much does it cost to hire an estate lawyer in Vancouver?

Costs vary based on complexity. For a simple will, fees may start around $500–$800. Complex estate planning or litigation can cost more, but the long-term savings in avoided taxes, probate delays, and legal disputes often outweigh the fees.

What’s the risk of using a DIY will kit in BC?

DIY will kits often fail to meet legal standards, leading to:

Invalid wills
Outdated clauses
Disinherited children or spouses
Legal challenges An experienced lawyer ensures your will complies with WESA and accurately reflects your intentions.

Can an estate lawyer help prevent family conflict?

Yes. A well-drafted estate plan can:

Reduce the chance of contested wills
Clarify intentions around inheritance, property division, and beneficiaries
Prevent confusion or resentment after your passing This proactive step can help preserve family unity.

Is estate planning only for wealthy people?

Not at all. Estate planning is for anyone who wants control over their legacy — including guardianship for children, funeral wishes, and asset distribution. Even modest estates benefit from legal protection and clarity.

How do I choose the right estate lawyer in Vancouver?

Look for someone with:

Decades of experience in BC estate law
A track record in wills, probate, and estate disputes
A client-focused approach with clear, compassionate communication
Tim Louis, for example, has over 40 years of experience and is known for his trusted, approachable style.

Key Takeaways: When to Call an Estate Lawyer in Vancouver

✔ Wills aren’t just for the wealthy – Everyone can benefit from a legally valid will to avoid family stress and ensure their wishes are respected.
✔ Estate planning prevents legal challenges – Early planning helps avoid disputes, protect vulnerable dependents, and honour blended family dynamics.
✔ Probate can be complex – If you’re an executor or family member managing a loved one’s estate, legal guidance ensures you meet all legal duties in BC.
✔ Wills variation claims are real – BC’s WESA law allows for legal challenges; having a lawyer reduces risks and helps craft a defensible plan.
✔ Tim Louis makes it simple – With over 40 years of trusted service in Vancouver, Tim Louis is known for clear guidance, compassionate service, and legally sound solutions.

Estate & Wills Litigation