Most people think of a Will as a simple document that hands things out when you’re gone. But what happens when the people you’re leaving things to aren’t quite ready to receive them? That’s where a Trust comes in.
A Trust is a legal arrangement built right into your Will that lets you control how and when your beneficiaries receive their inheritance — not just who gets what. Instead of handing over a lump sum, you appoint a trustee (a trusted person or professional) to manage and distribute funds according to rules you set out in advance.
It doesn’t cost extra to include one
In Ontario, the most common type is called a Testamentary Trust — and it lives inside your Will. There’s no separate document to file, no complicated setup process. Your lawyer simply drafts the terms as part of your Will, so the only added cost is a slightly more detailed will. The trust itself doesn’t spring into existence until you pass away, at which point your trustee steps in and follows your instructions.
You decide the rules
This is where a Trust becomes a powerful tool. You can direct your trustee to release funds at specific ages (say, one-third at 21, the remainder at 30), restrict spending to particular purposes like education, rent, or medical care, or give your trustee full discretion to decide what’s appropriate based on your beneficiary’s circumstances at the time.
Who benefits most from a Trust in a Will?
Children and minors — Ontario law prevents minors from directly receiving a significant inheritance. Without a Trust, those funds can end up frozen in court until your child turns 18. A Trust keeps the money accessible for their real needs — school fees, healthcare, everyday support — while protecting it until they’re truly ready.
Beneficiaries who need extra protection — Whether it’s a family member dealing with addiction, debt, or financial impulsivity, a discretionary Trust means they can’t demand a lump sum. You can direct that payments go out monthly, or even straight to a landlord or school, keeping the funds purposeful.
Loved ones with disabilities — A fully discretionary Trust (sometimes called a Henson Trust) can provide meaningful financial support to a beneficiary on ODSP without disqualifying them from their benefits. Because the trustee holds complete discretion and the beneficiary can’t compel payments, the inheritance isn’t counted as their asset under Ontario’s rules.
The bottom line
A Trust in your Will isn’t just for the wealthy or the complicated — it’s for anyone who wants their wishes carried out thoughtfully, not just distributed and forgotten. With the right language in your will, you stay in control long after you’re gone.
Want help building a will that includes provisions for your beneficiaries? Smartwills makes it straightforward.
Want more information?
Are you interested in a consultation with Peter R. Welsh?
Contact me at Peter@SmartWills.ca
By telephone 416-526-3121
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This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions.
