When you are considering disability planning options, Henson Trusts will likely come up at some point. Here are some pros and cons to this possible course of action of which you need to be aware.

Advantages of a Henson Trust

A Beneficiary Can Receive Public Benefits

The first major advantage of the Henson Trust is the obvious one, and it is the reason why people set it up in the first place. It allows for a beneficiary to receive public benefits without having to use the money that is placed in the trust. Normally, public authorities will have a means test for public benefit, and that money would count against the beneficiary. The usual limit on assets is $40,000. The Henson Trust takes the money out of the beneficiary’s control and puts it in the hands of the trustee. This essentially removes their legal ownership of the assets.

The Beneficiary Will Be Provided for During Their Lifetime

The Henson Trust will also ensure that the beneficiary is provided for over the course of their lifetime. The assets in the trust can be used for the benefit of the person with special needs, and it will improve their quality of life. This could include care and other material support that they need to have a better situation. The trustee is free to use these assets for the benefit of the person with special needs as they see fit, thanks to the absolute discretion that they have.

With the money in the trust, the beneficiary will always be provided for, so long as there are still assets. This is an invaluable way for families to know that their disabled loved ones will be taken care of long after they are gone. Families can place an unlimited amount of money in a Henson Trust, and it will give them peace of mind.

The other important reason for a trust other than preserving benefits, is for when the person cannot manage the inheritance themselves or would be vulnerable, manipulated or abused, therefore, requiring a trustee. There are also certain cases when the person is not on ODSP but still needs a trust to manage their inheritance.

The Tax Rates on Trust Income Are Lower

There are also tax advantages of placing assets in a Henson Trust. Presumably, the trustee will be investing the money and using it to earn dividends or other investment income. In the case of a regular inter vivos trust, the tax rate will be the highest marginal rate, and there could be quite a tax hit when there is income. Henson Trusts allow for the beneficiary’s income to be used as a base for the tax rate. Considering that there are strict income limits that govern the receipt of public benefits, it ensures that the tax rate will be very low.

Drawbacks to a Henson Trust

While many people find Henson Trusts to be beneficial for the reasons stated above, here are some things that may give them concern.

The Trustee Has Wide Discretion

One of the major possible drawbacks of Henson Trusts will not always be a problem. The trustee is given an incredible amount of power over the money as they have absolute discretion over the assets. They can invest them as they see fit and provide for the beneficiary as they choose. The settlor is showing a very high degree of confidence in the trustee that they will both be smart with the assets and take care of the beneficiary. In most cases, this is not a problem, but it can be an issue if the settlor ends up choosing the wrong person as trustee.

The Laws Change Frequently

Another possible disadvantage is the fact that the laws of Henson Trusts seem to change frequently. Every so often, one of the provinces may even try to mount an attack on the legality of these trusts as they cost governments money. ODSP could alter the rules for eligibility for public benefits, including those on distributions and purposes for which the money may be used. The good news is that one province tried to challenge the legality of Henson Trusts. In 2018, the Canadian Supreme Court reaffirmed their legality, so they are seemingly here to stay, albeit with the possibility of changed rules. A Henson Trust lawyer could advise you of the current legal rules that could affect your disability planning.

There Could Be High Costs

Finally, the costs of establishing and operating a Henson Trust could eat into the assets. While Henson Trusts provide valuable benefits, there is a fee to establish the trust. In addition, many settlors will decide that the best way to manage the money is to hire a professional trustee. While this may maximize the investment performance, you would pay a percentage of the assets each year as fees. In addition, you would also need to prepare tax returns and will have other administrative requirements, each of which cost money; however, many families find that the ability of the beneficiary to receive public benefits far outweighs the costs of the trust.

It’s time to address your child custody battle against your ex, for you to properly prepare yourself consider some of the suggestions below. Before you go ahead and apply all these concepts you should ask yourself if you should set up a consultation with child custody lawyers for an easier process. to get qualified and experienced child custody lawyers.

1: Try to Avoid Saying Anything Unnecessary To Your Ex

How you discuss and act around people during your custody battle will express how you might act in your home which overall affects your assessment. The best method to make sure this does not occur is to ensure you don’t cause any harassing or disrespectful discussion with the other party. Almost certainly you will have to talk with the other party and if you don’t have child custody lawyers as a messenger you need to be smart, so mentally prepare yourself beforehand when preparing a discussion.

2: Evade Any Physically Confrontation With Your Ex

This builds off the prior suggestion but making sure to explain how physical confrontation is much more severe. If something like talking smack can have an impact on the judge’s decision it isn’t hard to believe that physically confronting your ex might create a more harsh penalty. Luckily throughout the process you won’t need to meet your ex face to face, and even in some scenarios like dropping off the kid, this can be minimalized with some smart planning. Make sure that something like physical fights does not occur as this would have a terrible ruin your overall chances.

3: Make Sure to Have All Child Support and Other Debts Paid

One of the best ways to prove to the judge that you are a responsible parent is to make sure all your debts are paid. This is especially true when it comes to child support and other family matters as these directly impact their decision of if you can take care of children. Having debts can show that the parent does not have a decent income or that they lack the awareness to make sure all their debts are paid. This is why it is very crucial to make sure to keep up to date with your debts.

4: Allow Your Ex To See The Kids

Even though some parents might not like this, letting your ex see the kids is important. First off, denying the other parents the right to see their kid can give them the opportunity to object your behaviour and call you in to the spotlight for not respecting the agreement. By dedicating some of the child’s time to the other parent it shows that you have the kids best interest at heart as you allow them to receive the proper growing environment.

5: Don’t Start Dating Till The Custody Battle Has Finished

This one may seem more obvious than the others but bringing up this point is important. If you start dating immediately after splitting up this can demonstrate that you might have made this decision without considering the effect on the child. This time should be spent talking with your children and family to create a smooth transition.

If you are involved in an auto accident that leaves you with serious injuries, you will already be dealing with many issues. However, when your injuries have been caused by a hit-and-run driver, your case becomes even more complex. Since you must be able to find and identify the driver who hit you before you can file a claim with the insurance company of the at-fault driver, time is of the essence. To make sure you receive compensation to pay medical bills, replace lost wages from your job, and ease your emotional and physical pain and suffering, be sure to take these steps following your accident.

Remain at the Scene

Even though you may be tempted to chase down the driver who hit you, it is best to remain at the accident scene. If you don’t, an insurance company could raise doubts that the accident even took place as you stated.

Call Police

As soon as you can after the hit-and-run, call police to the accident scene. By doing so, you can give them a description of the vehicle that struck you, and hopefully the license plate number as well. Also, police will file an accident report documenting what took place, which will be critical when you file your claim with an insurer.

Seek Medical Attention

Even if you are not sure whether or not you have suffered serious injuries, seek medical attention following your accident. Whether this means allowing paramedics to examine you at the scene and take you to a hospital for further evaluation or choosing to visit your family doctor within the next day or two, don’t delay seeking treatment. Since some injuries, including whiplash and brain injuries, may not display symptoms immediately, don’t put your health at risk unnecessarily. In addition, delaying treatment will also let an insurance company claim you were never seriously injured in the accident.

Document the Accident

If possible, take photos of the damage to your vehicle, any visible injuries you have, and anything else you think may be relevant. In doing so, you will make it hard for an insurance company to claim the accident never happened.

Speak to Witnesses

If others saw what happened, try to get statements from as many witnesses as possible. Along with this, make sure you get their contact information, since your attorney will probably want to speak to them later on to get more details about the accident.

Hire an Experienced Attorney

Perhaps most importantly of all, hire an attorney who is experienced in handling hit-and-run auto accident cases. Along with giving you objective advice about your case, your attorney can also conduct an in-depth investigation into the accident, negotiate a settlement with the insurance company, and make sure your legal rights are protected throughout the process.

If you have been injured by a hit-and-run driver, hold them accountable for their reckless endangerment of your life. To do so and get the compensation you deserve, consult an auto accident attorney at D.R. Patti & Associates.

D.R. Patti & Associates

https://vegaspifirm.com/

720 S. 7th Street, 3rd Floor Las Vegas, Nevada 89101

(702) 331-3391