Why might a parent choose to establish a testamentary trust for a child with special needs, rather than leaving a direct bequest?

Question: Why might a parent choose to establish a testamentary trust for a child with special needs, rather than leaving a direct bequest?

Answer options: ✅ To protect the child's entitlement to government assistance programs by ensuring the inheritance is not recognized as personal assets.

• To allow the child to have full discretionary control over the inherited funds immediately upon the parent's death.
• To avoid all probate fees on the assets transferred into the trust.
• To ensure the assets are distributed to the child's other siblings equally over time.

Correct answer: To protect the child's entitlement to government assistance programs by ensuring the inheritance is not recognized as personal assets.

Explanation: A testamentary trust, particularly a 'Henson' trust, allows assets to be held for the benefit of a child with special needs without being considered their personal assets for the purpose of qualifying for means-tested government disability benefits, thus protecting their financial support.