What do Henson trusts enable beneficiaries to do?

Henson trusts are specifically designed to enable beneficiaries, typically those with disabilities, to receive financial support without jeopardizing their eligibility for government benefits, such as social assistance programs. The key feature of a Henson trust is that it allows beneficiaries to derive funds from the trust without having those funds counted as income, thereby preserving their entitlement to government assistance.

This structure is vital because, in many jurisdictions, receiving certain forms of financial assistance can disqualify individuals from accessing other forms of government support. By utilizing a Henson trust, beneficiaries can improve their quality of life through additional resources while maintaining access to necessary government benefits.

The other options do not accurately reflect the purpose or function of Henson trusts. For instance, retaining title to all personal assets or disregarding program eligibility concerns does not align with the protective intent of Henson trusts, which aims to balance personal wealth and public assistance. Similarly, the notion of transferring all assets to a trust without restrictions contradicts the fundamental principles that guide the establishment of a Henson trust. The design is meant to safeguard beneficiaries rather than allow unfettered access to assets that could impact their eligibility for crucial assistance programs.