If you have a disabled child or relative and you plan on making a gift to them either through a Will or while you are alive, your gift may result in them losing out on any government benefits they are entitled to as any added income or assets can result in a claw back or discontinuation of government benefits.
To avoid this, any gift to benefit an disabled should be put into a discretionary trust, with yourself, a family member, or a friend as trustee. A discretionary trust means that the beneficiary has no right to the trust, and as such the trust is not treated as an asset. The trustee can use the trust money to benefit the disabled person, by topping up assistance to government benefits for specific needs and comforts, rather than supplanting them.
Gifts in a Will
We can draft up special clauses in a Will for disabled beneficiaries that direct your executor to hold funds in a special discretionary trust for your disabled child or other beneficiary that fall within the requirements set by the provincial government.
Gifts not made in a Will, or made in a Will without a Disability Trust clause
If the grantor is still alive or if a disabled person is given money or other asset, we can draft a disability trust agreement. To do this, the trustee (and donor if separate), and the beneficiary will sign the agreement. This document can then be used to bring to a bank to open up a trust account.