Before RDSPs there were not a lot of options for Parents of disabled children to protect the income they were saving for their child’s future. All options ended with paying a great deal of tax on it.
The RDSP helps a great deal with this, however before the RDSP another way to dissipate the impact of a disabled person receiving a large inheritance which could cause large tax implications and worse a loss of services and programs (due to the change in their financial status) was a Henson Trust (a specialized version of the Absolute Discretionary Trust).
I was going to attempt to explain Henson Trusts. Thanks to Mark over at the Blunt Bean Counter, he has a much better explanation with this one:
Note: This is a cheat on my part relying on other writers, but this has been sitting in my “To Do” list for a while. Please feel free to comment and ask questions, I will ensure I get some answers for you.