From: ab504@freenet.carleton.ca (Kenneth Pope) Hansen Trust *************************************************************************** This message is for anyone who has a family member who has special needs, or has friends in this situation. It isn't well known that there is a problem with leaving part of your estate to a family member who receives social support payments or services. Briefly stated, the inheritance is used up until it is all gone and then the person with special needs falls back onto social support. If you know anyone who would benefit from this information please pass it along. I'm available if you have questions by e-mail. Ken ******************************************************************* MEMORANDUM DATE: November 15th, 1996 RE: Henson Trust arrangements in Wills : Leaving an inheritance to family members receiving Family Benefits. ******************************************************************* Dear : I expect you are involved with families which will be interested to know that any part of their estate that they leave to a family member receiving Family Benefits will be used to offset any support benefits they would otherwise receive. They may be even more interested to know that a properly prepared `Henson' Trust arrangement in their Will effectively avoids this problem. This type of Trust has only been available since 1989, and is generally unknown to those who would find it most valuable. I have taken the liberty of including information regarding `Henson' Trusts along with this memorandum. Feel free to use it in newsletters or to provide copies to interested parties, with some indication of its source in case there are questions arising from its use. I am available to make presentations on this topic (and general Wills, Powers of Attorney and estate matters) to association meetings, support groups, and to individuals. If you wish to discuss this type of Trust further please call at your convenience. Yours very truly, Kenneth C. Pope. ******************************************************************** `HENSON' DISCRETIONARY TRUSTS PROTECT YOUR FAMILY AND YOUR ESTATE If a family member with special needs is receiving Family Benefits or other social support, and if they are left an inheritance, that inheritance must be exhausted before any further benefits will be provided to them. There is one solution to this inequity. A `HENSON TRUST' is a very special legal arrangement. Only available since 1989, when the case after which it is named was upheld by the Ontario Court of Appeal, it places estate assets in the care and control of a trustee to be administered for the benefit of a beneficiary. Inheritances placed in a properly prepared Discretionary Trust will not be available to offset provincial benefits. Special Beneficiaries often benefit from guidance in handling large sums of money or significant assets, temporarily or on an on-going basis. Some beneficiaries may be unable or unwilling to seek guidance, and may at some point be left without guidance unless special provisions are put into place for their assistance. A trust may be created during your lifetime (inter vivos) or according to the terms of your Will (testamentary). Although these trusts have some limitations they are of considerable value. It is essential that Discretionary Trust arrangements continually consider ongoing changes in provincial regulations and new case law. Many families have members who require assistance in handling their daily affairs, regardless of their other abilities. Special arrangements are necessary to properly ensure that loved ones will be given the extra care they deserve, and that inheritances will not be wasted. Specialized legal counsel is necessary to ensure that the drafting of Wills follows the court tested arrangements required. Guidance with insurance plans to create an estate is also often advisable. -- KENNETH C. POPE Tel: (613) 567-8230 ----------------------------------- Fax: (613) 567-9722 Barrister, Solicitor, Notary Public Suite 205 - 460 O'Connor Street Ottawa, Ontario K1S 5H3