Protect Disability Benefits with a Henson Trust in BC - Tim Louis can help
If you have a loved one with a disability, estate planning must balance compassion with legal precision. A Henson Trust ensures your inheritance protects — not disrupts — their financial security and eligibility for government support.
- Preserve vital Persons with Disabilities (PWD) benefits
- Provide long-term financial stability and peace of mind
- Backed by 40+ years of estate and disability law experience in Vancouver
Why Families in BC Choose a Henson Trust
- Preserve Disability Benefits – Assets are protected so your loved one continues receiving PWD assistance.
- Secure Long-Term Financial Stability – Inheritances are managed responsibly for lasting support.
- Reduce Family Conflict – Clear legal structure minimizes disputes and misunderstandings.
- Promote Dignity & Independence – Provides comfort and quality of life without jeopardizing benefits.
What is a Henson Trust?
A Henson Trust is a special type of discretionary trust created to protect the inheritance of a person living with a disability.
Unlike a regular trust, the beneficiary cannot demand funds. Instead, the trustee has complete discretion over when and how money is distributed. This structure means the trust’s assets are not considered the beneficiary’s property, which preserves eligibility for Persons with Disabilities (PWD) benefits in British Columbia.
Key Features:
- Beneficiary keeps government disability assistance.
- Trustee manages funds safely and responsibly.
- Funds can be used for housing, medical needs, therapies, or quality-of-life improvements.
Legal Background: The name comes from the Ontario case Henson v. Ontario (1989), which established that discretionary trusts protect disabled beneficiaries from losing government support. [See CanLII for related trust cases → https://www.canlii.org/en/bc/]
Find Out if a Henson Trust is Right for Your Family
Why Henson Trusts Matter in BC
In British Columbia, many families rely on the Persons with Disabilities (PWD) program for crucial financial and medical support. But an inheritance left directly to a disabled loved one can put these benefits at risk.
That’s where a Henson Trust makes all the difference. Because the beneficiary has no legal control over the assets, the Ministry does not treat the funds as their property. This allows your loved one to continue receiving essential disability assistance while still benefiting from your estate.
Without a Henson Trust:
❌ Even a modest inheritance can push a disabled heir over PWD asset limits.
❌ Benefits may be reduced or revoked.
❌ Families face complex, stressful reinstatement processes.
With a Henson Trust:
✅ Disability benefits are preserved.
✅ Extra funds can be used for housing, therapies, or quality-of-life needs.
✅ Families gain peace of mind knowing support will continue.
Q: Does a Henson Trust protect disability benefits in BC?
A: Yes. A properly drafted Henson Trust ensures assets do not count toward a beneficiary’s financial eligibility for PWD, allowing them to keep government benefits while receiving additional support.
Benefits of a Henson Trust
A Henson Trust gives families more than just legal protection — it provides peace of mind.
Key Benefits:
- Preserves Disability Benefits
Protects eligibility for BC’s Persons with Disabilities (PWD) assistance even after an inheritance. - Ensures Long-Term Security
Funds are managed by a trustee for stable, lasting support. - Reduces Family Disputes
Clear legal structure minimizes conflict among heirs. - Supports Dignity & Independence
Provides extras like housing upgrades, therapies, or travel — without losing government benefits.
Speak with Tim Louis & Company About Protecting Your Family’s Future
Risks and Considerations
While a Henson Trust is a powerful planning tool, it must be set up correctly. Families should be aware of key considerations to avoid problems.
Common Risks:
- Trustee Selection
The trustee has full control over distributions. Choosing the wrong person can lead to mismanagement or family conflict. - Legal Drafting Errors
If the trust is not worded properly, it could be treated as the beneficiary’s property — putting benefits at risk. - Compliance with BC Law
Henson Trusts must follow British Columbia’s estate and trust rules. Local legal guidance is essential. - Need for Regular Review
Laws and benefit programs change. A trust should be reviewed regularly to ensure ongoing 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 beneficiary’s best interests.
Henson Trust vs Other Planning Tools
Families often wonder how a Henson Trust compares to other ways of planning for a loved one with a disability. Here’s a simple breakdown:
Option | How It Works | Key Risks / Limitations | Best Use |
| Henson Trust | Trustee has full discretion; assets not counted as beneficiary’s property. | Must be drafted carefully; trustee must be reliable. | Protects disability benefits while providing extras for quality of life. |
| Registered Disability Savings Plan (RDSP) | Government-registered savings plan with grants and tax-deferred growth. | Strict withdrawal rules; funds may impact benefits if mismanaged; contribution limits. | Good for long-term savings alongside a Henson Trust. |
| Other Discretionary Trusts | Trustee may decide distributions, but structure varies. | Without Henson-specific protections, assets may still be treated as beneficiary’s property. | May be useful in certain planning contexts, but not as protective as a Henson Trust. |
| Joint Accounts | Assets placed in joint account with family member. | Risky: exposed to joint owner’s creditors, divorce, or disputes after death. | Generally discouraged — lacks legal protection and security. |
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. A Henson Trust is a discretionary trust that protects disability benefits by keeping assets out of the beneficiary’s control.
How Tim Louis & Company Can Help
At Tim Louis & Company, we’ve been guiding Vancouver families through estate planning and disability law for over 40 years. We know that planning for a loved one with a disability requires both legal expertise and compassion.
Our team has successfully helped many families set up Henson Trusts, ensuring their loved ones remain eligible for Persons with Disabilities (PWD) benefits while gaining financial stability and peace of mind.
“I am the father of an autistic adult that will never be able to handle his own affairs. Until fairly recently, my wife and I had no idea how to properly secure his financial future. Tim Louis helped us put a plan in place and gave us peace of mind knowing our son will always be looked after.” — Garrett Jasperse, Google Review
When you choose Tim Louis & Company, you’re choosing a lawyer who is committed to protecting your family’s future, with advice that is both practical and deeply personal.
Book Your Free Consultation Today
Call Tim Louis today at (604) 732-7678 or contact us online.
About Tim Louis
Tim Louis, a trusted Vancouver lawyer with more than four decades of experience, has dedicated his career to helping individuals and families plan with confidence. His practice includes a strong focus on estate planning and Henson Trusts, ensuring that loved ones with disabilities are protected both legally and financially.
Together with his compassionate team, Tim provides personalized guidance in creating and administering Henson Trusts, safeguarding disability benefits while securing long-term stability for beneficiaries. Clients rely on his deep knowledge of both disability law and estate planning to navigate these complex decisions with clarity and peace of mind.
For expert support in establishing a Henson Trust or planning for a disabled beneficiary’s future, connect with Tim Louis & Company today.
Frequently Asked Questions
Q: What is the main purpose of a Henson Trust in BC?
A: The primary goal of a Henson Trust is to protect a disabled beneficiary’s eligibility for Persons with Disabilities (PWD) benefits while still allowing them to benefit from an inheritance or gift.
Q: Can income from a Henson Trust reduce PWD benefits?
A: The trust itself is not considered the beneficiary’s asset, so PWD benefits are preserved. However, if trust income is distributed directly to the beneficiary as cash, it may affect monthly benefits. Structured planning ensures funds are used for housing, medical care, therapies, and quality-of-life expenses without reducing eligibility.
Q: Who can set up a Henson Trust in BC?
A: A Henson Trust is typically created by parents, grandparents, or other loved ones of a disabled person. It is usually established through a will but can also be set up during the settlor’s lifetime with legal guidance.
Q: How is a Henson Trust different from leaving money outright in a will?
A: If money is left outright, it may disqualify the disabled heir from PWD benefits. A Henson Trust ensures assets are held in a discretionary structure so the government does not consider them the beneficiary’s property.
Q: How often should a Henson Trust be reviewed?
A: Because benefit rules and estate laws evolve, families should review a Henson Trust every few years—or sooner if there are major life changes—to ensure it remains fully compliant.
Further Reading
Further Reading: Henson Trusts in British Columbia
Government of British Columbia – Disability Assistance
Outlines eligibility criteria for Persons with Disabilities (PWD) benefits in BC, including how assets and trusts are treated.
Visit Government of BC – Disability AssistanceCanada Revenue Agency – Prescribed Disability Trusts
Provides federal tax guidance on trusts for persons with disabilities, including how income and assets are reported.
Visit CRA – Prescribed Disability TrustsDisability Alliance BC
A non-profit organization offering advocacy, resources, and guides for people with disabilities in BC, including estate planning considerations.
Visit Disability Alliance BCPlan Institute – Future Planning for People with Disabilities
Helps families and individuals plan for long-term financial and legal security, with resources on trusts, wills, and supported decision-making.
Visit Plan InstituteCanLII – Henson Trust Case Law in Canada
Free access to Canadian case law and tribunal decisions, including the landmark Henson v. Ontario decision and BC trust litigation cases.
Visit CanLIIPeople’s Law School – Wills & Estates in BC
Plain-language legal education covering wills, estates, and trust options in British Columbia.
Visit People’s Law SchoolCanadian Centre for Elder Law (CCEL)
Research and policy development on law reform related to aging, capacity, and estate planning — often intersecting with disability planning.
Visit CCEL
🕒 Last reviewed: by Tim Louis, Long Term Disability Lawyer in Vancouver
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