Planning for a Loved One with a Disability
Understand your options
For families in Nova Scotia, estate planning takes on extra complexity when a loved one lives with a disability. Parents and caregivers often ask: How can I provide for my adult child without causing them to lose essential government support?
Under Nova Scotia’s Disability Support Program (DSP), adults with disabilities may qualify for financial assistance, supported housing, and community services. But these benefits are means-tested — which means a direct inheritance can unintentionally disqualify a beneficiary from the very programs they rely on.
That’s where the Henson Trust comes in.
A Henson Trust is a fully discretionary trust designed to protect eligibility for disability-related benefits. Established through a will, it allows a trustee to manage funds for the benefit of the disabled person, but without granting the beneficiary any legal right to demand or control the money.
Because the trust property is not considered the beneficiary’s asset under law, it is excluded from means testing for DSP and other provincial programs — a crucial feature for protecting ongoing support.
The trustee may use the funds for anything that enhances the beneficiary’s quality of life: medical aids, travel, education, therapies, or even a companion. The discretion must be absolute — any hint that the beneficiary has a right to the funds could jeopardize the trust’s protective status.
When the beneficiary passes away, the remaining assets are distributed to other heirs or charities as set out in the will.
Without a Henson Trust, even a modest inheritance can force a reassessment of DSP eligibility — potentially resulting in the loss of benefits, a housing crisis, or financial hardship.
In Nova Scotia, Henson Trusts are recognized as a best practice for estate planning where a beneficiary receives provincial disability support. Families are strongly encouraged to work with a lawyer who understands disability planning and the nuances of the Adult Capacity and Decision-making Act, which may also affect long-term care arrangements.
A properly drafted Henson Trust offers something every family wants: the assurance that a loved one will be supported without sacrificing the assistance they depend on.
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