Health and Welfare Trusts

A Health and Welfare Trust (HWT), also known as a Personal Health Spending Plan (PHSP), provides an alternative method for small business owners to provide a health care expenses benefit plan. The HWT can be implemented as an all encompassing health care services plan, usually as a more affordable alternative to a group insurance plan, or it can be set up as a “top up” plan for the owner, dependent family members and key employees, over and above an existing base group insurance plan.

Members of the HWT plan have access to a set amount of dollars each year to reimburse dental and medical expenses. The dollars set aside to cover these expenses are managed by a third party trust company in return for a nominal administration fee. The health care expenses are fully tax deductible to the Company and tax free to the employee.

The HWT can be set up to cover a much broader range of health care expenses such as orthodontics and chiropractic services. Critical Illness insurance and Long Term Care insurance can also be covered.

Health and Welfare Trusts have been described as "one of the best kept secrets in Canada". We will show you the benefit of setting up a HWT or PHSP as opposed to paying for health care expenses with personal after tax dollars and relying on the medical expense tax credit.

Previous Page Top Of Page