Maria's parents want to establish a Henson Trust for her, but they are concerned about the cost of professional trustees. Which of the following is a common, cost-effective alternative for managing a Henson Trust?

Question: Maria's parents want to establish a Henson Trust for her, but they are concerned about the cost of professional trustees. Which of the following is a common, cost-effective alternative for managing a Henson Trust?

Answer options: ✅ Designating an individual family member or trusted friend as the trustee, often unpaid or minimally compensated.

• Requiring the beneficiary to act as their own trustee, significantly reducing administrative fees.
• Automatically converting the trust into an RDSP once it reaches a certain asset threshold.
• Distributing assets directly to the beneficiary's personal savings account once per year to avoid trust fees.

Correct answer: Designating an individual family member or trusted friend as the trustee, often unpaid or minimally compensated.

Explanation: While professional trustees ensure impartiality and expertise, they can be costly. For many families, appointing a trusted family member or close friend as a trustee for a Henson Trust is a common and more cost-effective alternative, though it requires careful consideration of the chosen individual's capacity and integrity.