Trusts for an Adult Child With a Disability Who Isn't on ODSP in Ontario

Most articles about estate planning for a child with a disability focus on the Henson trust — a discretionary trust designed specifically to preserve eligibility for means-tested government benefits like ODSP. But not every adult child with a disability relies on ODSP or another means-tested program. If that describes your family, the Henson trust's core reason for existing simply doesn't apply to you, which means the trust you actually need may look quite different.

A trust for a disabled adult child who isn't on ODSP still has a real job to do — it's just a different job than protecting benefit eligibility.

This article walks through what that kind of trust is generally protecting against, the range of structures available, and what to think about when choosing a trustee.

Why a Henson Trust's Main Purpose Doesn't Apply Here

A fully discretionary Henson-type trust works because the beneficiary has no fixed, guaranteed entitlement to trust property, which generally means the trust's assets aren't counted against them for programs that limit how much a recipient can own. If your adult child isn't on ODSP or a similar means-tested benefit, that specific advantage isn't doing any work for your family. That doesn't mean a discretionary structure is wrong for you — it just means you should choose it for a different reason, not out of habit.

What This Kind of Trust Is Actually Protecting Against

• Difficulty managing a lump sum. A cognitive, intellectual, or other disability may make it harder for your child to manage a large inheritance safely, regardless of benefit eligibility.
• Vulnerability to financial abuse or undue influence. A trustee who controls the pace and purpose of distributions can reduce the risk of a beneficiary being pressured or exploited.
• Ongoing care costs that are hard to predict. Support needs can change over years or decades, and a trustee with discretion can respond to that in a way a single lump-sum inheritance cannot.
• What happens after your child's own death. Many of these trusts also need to say where any remaining funds go once your child no longer needs them.

Choosing How Much Discretion to Give the Trustee

Trusts for an adult child with a disability generally sit somewhere on a spectrum:

1. Fully discretionary — the trustee decides if, when, and how much to pay, guided only by the trust's general purpose. This gives maximum flexibility and protection, but requires real trust in your trustee's judgment.
2. Guided discretion — the trustee has discretion, but your will or a separate letter of wishes sets out priorities, such as housing, care, and recreation, to guide their decisions.
3. Defined criteria — the trust specifies particular categories of permitted spending more precisely, leaving the trustee less room to interpret your intentions.

There's no single right answer. The choice depends on how much you want to guide the trustee versus how much flexibility your child's future needs might require.

Who Should You Name as Trustee?

Family member vs. professional trustee

A family member often understands your child's needs and personality better than a stranger, but may lack financial or administrative experience, and won't necessarily outlive a trust that could run for decades. A professional trustee or trust company offers continuity and financial expertise, but at a cost, and without the personal relationship a family member brings.

A combination can work well

Some families name a family member and a professional trustee jointly, or name a family member with a professional trustee as a backup, combining personal knowledge of your child with administrative continuity if the family trustee can no longer serve.

Coordinating the Trust With the Rest of Your Plan

A trust in your will only takes effect on your death — it says nothing about who helps manage your child's affairs while you're alive, or after you're gone if your child cannot manage their own affairs. If your child cannot make their own property or personal care decisions, a Power of Attorney, if they have the capacity to grant one, or a court-appointed guardian where that isn't possible, may be needed separately from the trust itself. These are related but distinct pieces of planning, and a complete plan usually addresses both.

Frequently asked questions