Health & Welfare Trusts

A Health and Welfare Trust  (HWT) is a vehicle  that allows self employed business people (unincorporated or incorporated) to effectively deduct eligible medical expenses against business income.

Typically these costs for the owner, employees, and immediate family members would not be eligible as expenses against business revenue, however the CRA does have guidelines to ensure the trust is eligible and operational.

  1. For non-incorporated companies the limited you can deduct is $1500.00 per adult in the home and $750.00 per child per year.
  2. Incorporated Companies  limits depend on salaries.
  3. If a company has employees CRA states that the trust must be setup so that it is fair and equitable to the employees. For example; It cannot be setup to solely serve the owners of the company. But can have a structure that suites the companies budget for staff benefits.
  4. Cost of a Trust? This varies depending on the company administrating the Trust.

What can be put thought a trust?

All Traditional health care cost- like dental, prescription drugs and vision care are eligible, but the Health & Welfare Trust can cover the rest of an individual  cost as well:

~Insurance premiums paid by the employer/employee for the individual’s spouse for private health and dental plans

~Cosmetic dental and medical treatment

~Over the counter Drugs provided that they are prescribed by a physician

~Drugs for conditions sometimes excluded under conventional plans

~Facilities and services, such as alcohol or

drug addiction, nursing home care, special schools/institutions for mental or physical handicapped, licensed private hospital, semi-private or private charges in a hospital, care of a person that has been certified as mentally incompetent, care of a blind person, full time attendants in a nursing home.

~ Laser eye surgery

~ Professional services of a dietician, acupuncturist or psychologist, nutritionist

~ Dental care preventative, restorative, orthodontic

~ Medical equipment and devices

If you would like more information on HWT’s,  Salt Spring Insurance Services would be happy to help you. We can find you the most cost efficient trust available.