A fully discretionary trust used to provide for a beneficiary who has a disability and who receives, or may receive, means-tested government assistance. Because the trustee has absolute discretion over whether and when to distribute, the beneficiary has no fixed entitlement that a benefits authority can treat as the beneficiary's own asset — so the inheritance does not disqualify them from benefits.
The trustee can use the trust to fund the beneficiary's supplemental needs without affecting eligibility. The rules governing disability benefits and the recognition of Henson trusts vary by province, so the trust must be drafted to the specific provincial program.
