Mark, an Ontario resident receiving ODSP benefits, is the beneficiary of a discretionary trust that is not a Henson Trust. The trust distributes CAD 150 per month directly to Mark. How might this distribution impact his ODSP benefits?

Question: Mark, an Ontario resident receiving ODSP benefits, is the beneficiary of a discretionary trust that is not a Henson Trust. The trust distributes CAD 150 per month directly to Mark. How might this distribution impact his ODSP benefits?

Answer options: ✅ The CAD 150 will be fully deducted from his ODSP benefits as unearned income, reducing his monthly assistance dollar-for-dollar.

• ODSP will disregard the CAD 150 because it comes from a trust, regardless of its discretionary nature.
• Only the first CAD 100 will be deducted from his ODSP benefits; the remaining CAD 50 will be fully disregarded.
• The CAD 150 will be treated as earned income, subject to standard ODSP earnings exemptions.

Correct answer: The CAD 150 will be fully deducted from his ODSP benefits as unearned income, reducing his monthly assistance dollar-for-dollar.

Explanation: Distributions from discretionary trusts that are not structured as Henson Trusts are typically treated as income for ODSP purposes. Without a Henson structure, the income would generally reduce ODSP benefits, often dollar-for-dollar after any small exemptions, because the assets are deemed accessible to the beneficiary.