Which of the following is a primary benefit of establishing a Henson Trust for an individual with a disability receiving government benefits in Ontario?

Question: Which of the following is a primary benefit of establishing a Henson Trust for an individual with a disability receiving government benefits in Ontario?

Answer options: ✅ It allows the beneficiary to receive income and capital from the trust without jeopardizing their eligibility for means-tested government assistance.

• It provides immediate access to all trust assets by the beneficiary upon reaching the age of majority, ensuring financial independence.
• It directly supplements the beneficiary's Old Age Security (OAS) payments, increasing their monthly income significantly.
• It simplifies the application process for the Disability Tax Credit (DTC), making it easier to qualify for this federal benefit.

Correct answer: It allows the beneficiary to receive income and capital from the trust without jeopardizing their eligibility for means-tested government assistance.

Explanation: A Henson Trust is designed to hold assets in a fully discretionary trust, meaning the beneficiary does not have an absolute right to the capital, which prevents the assets from being considered their own for means-tested government benefits like ODSP.