A Lifetime Benefit Trust is not well known as it was recently enacted by the CRA. In a Will, a RRSP/RRIF can be left on a tax-deferred basis to a Lifetime Benefit Trust.
The mentally impaired and financially dependent child must be the sole beneficiary of the Trust during his or her remaining lifetime. The rollover requirements are exacting so advice from a tax expert is suggested. This is an absolute discretionary trust (like the Henson Trust): any monies paid out are done at the discretion of the trustee. The trustee, however, must consider the needs of the beneficiary including his or her comfort, care and maintenance.