How do you choose the right trustee for a Henson trust?
A Henson trust is fully discretionary, so the trustee's judgment decides whether money comes out, when, and what it is used for, which is exactly what protects ODSP eligibility. Choosing between family, friends, and professionals is a human decision with decades of impact. Successors are not optional, and a letter of wishes gives your trustee guidance they will rely on.
In part one, I explained what a Henson trust is and how it can protect ODSP benefits for a loved one with a disability in Ontario. If you missed it, start with my guide to Henson trusts, then come back. Today we get to the part families often rush, and it matters most. A Henson trust is only as good as the person you choose to run it. That person is the trustee, and choosing them well is one of the most loving, practical decisions you will ever make.
Why the trustee holds so much power
A Henson trust is fully discretionary. That word is the whole ball game. The beneficiary does not have a legal right to demand money from the trust, and that is exactly why the assets inside it are generally treated differently under ODSP rules. The trustee decides if money comes out, when it comes out, and what it is used for. Every distribution runs through that one person's judgment.
A good trustee needs more than a kind heart. They need longevity, because this job can last for decades. And they need a real willingness to learn how ODSP works, because payments connected to the trust are treated under ODSP rules. A careless trustee can hurt the benefits they are trying to protect, sometimes with a generous cheque written at the wrong time or in the wrong way. Generosity is beautiful. Generosity without homework can do real damage.
Family, friend, or professional: the honest tradeoffs
Most families start with a sibling, and for good reason. A sibling often knows the beneficiary best: the routines, the favourite meals, what calms a rough week, and the dreams that never make it into a legal document. The tradeoffs are longevity and family dynamics. A sibling may be close in age to the beneficiary, so who is still able to do this job thirty years from now? Other siblings may also quietly wonder why money was spent one way and not another.
A trusted family friend can be a lovely middle option. They may be more neutral than a sibling, and neutrality matters when family opinions get loud. The risk is distance over time. Friendships change, people move, and life gets busy. You want someone who will still show up years later.
A professional or corporate trustee brings a different strength. They do this for a living. They understand paperwork, deadlines, tax filings, and benefit rules, and they are built to last longer than any one person. The tradeoff is cost, and it is real. Professionals charge fees, and your loved one will work with an organisation, not just a familiar face at the kitchen table. For some families that trade is worth it. For others, the personal connection matters more. There is no single right answer, only the right fit for your family.
Why successors are not optional
Here is a sentence I wish every family would underline: always name successors. A Henson trust may need to run for the rest of your loved one's life. Trustees retire. They move, get sick, burn out, and sometimes pass away before the beneficiary does. If the only trustee can no longer act and nobody was named to step in, a protective plan can become an expensive, stressful court problem.
Think of successors like a relief pitcher. You hope the starter goes the distance, but you never take the field without someone ready. Name at least one successor, consider naming two in order, and tell those people early, so they can agree and ask questions while there is time.
The letter of wishes trustees quietly rely on
If the trust is the engine, a letter of wishes is the map. It is not legally binding and does not replace the trust document. It tells the trustee how your loved one actually lives. What does a good week look like? Which programs, people, and places matter most? What should money make possible: travel to see family, a favourite hockey game, new technology, a celebration that makes an ordinary month feel bigger?
Write it in plain language, like a letter to a friend who is taking over for you. Include routines, comforts, sensitivities, and the small details only family would know. Years later, facing a tough call, your words help them choose the way you would have chosen. Update it as life changes, because the person your loved one is at twenty five will keep growing, just like the rest of us.
Co-trustees and regular reviews
You do not always have to pick one kind of trustee. Co-trustees can balance family knowledge with professional discipline. Picture a sibling who knows the beneficiary deeply working alongside a professional who handles the rules, records, and filings. If you go this route, be clear about how decisions get made and who handles the day to day work.
Review the choice every few years, and after any big life change. The trustee who was perfect when your child was twelve may not be the right fit at thirty. A short review while you update your own will is a natural habit, and if you are still building that foundation, my plain language guide to wills basics is a good place to start. Only a lawyer can draft the trust itself, so treat this as education only, not legal advice, and bring your questions to a qualified Ontario estate lawyer who understands disability benefits.
I know this decision can feel heavy, because it sits right where money meets love. Take your time. Talk honestly with the people you are considering, and choose the person, or the team, who will protect both the benefits and the life those benefits are meant to support. That is what this trust is really for: a full, joyful, dignified life, with someone steady in their corner.
See where you stand: the free RDSP readiness checker takes about a minute and shows whether an RDSP belongs in your plan and what the government could add. No signup, and no pressure.
A quick note: this post is educational, not financial advice. For guidance on your own situation, book a free conversation. You don't have to figure this out alone. I'm here to help you through every step.