Transcript Creating a Life Like Yours

Special Needs Trusts
The Arc of Northern Virginia
What Is A Special Needs Trust?
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This is a trust designed to provide benefit to
and protect the assets of a person with a
disability and still allow the individual to be
qualified for and receive government benefits;
especially Medicaid and SSI.
Why Do I Need A
Special Needs Trust?
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In the commonwealth of Virginia, many public
services you or your loved one receive or one
day will need are tied to Medicaid and Social
Security Eligibility.
Medicaid and Social Security have limits on what
you can earn each month and save in a savings
or checking account.
If you go over these limits, services can stop.
Why the purpose of a
Special Needs Trust?
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Provides a management to meet the needs of
the Beneficiary which may arise and cannot
otherwise be met by the beneficiary's personal
resources or benefits.
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Promote the dignity, comfort and happiness by
providing supplemental care, treatment not
otherwise covered.
Who is Eligible For A
Special Needs Trust?
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Anyone with a physical, mental or
intellectual disability; as defined by the
Social Security Act
Elderly;
Receiving Medicaid or Disability Income
Types of
Special Needs Trusts
Self-Funded Trusts
D4 (a) - Private
D4(c) - Pooled
Third Party Trusts
funded
unfunded
Self-Funded Trusts – d 4 (a)
1.
2.
3.
4.
Established by the parent, guardian
Funded by the individual
For the sole benefit of the individual
Created by a private attorney or institution
Self-Funded Trusts – d 4 (c)
1.
2.
3.
4.
Established by the parent, guardian or the
individual;
Funded by the individual
For the sole benefit of the individual
Established with a Pooled Trust Program
by utilizing a Master Trust Document and
Joinder Agreement
What Is A
Pooled Special Needs Trust
(a.k.a. d4c)
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Managed by a Non – Profit organization
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Funds from individual participants are pooled for
fee and investment purposes
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Fees are calculated based on the total amount of
pooled funds
Self-Funded Trusts
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Most Self-funded accounts are established due
to:
A personal injury settlement
 An inheritance
 Any other money that threatens benefits
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Self-Funded Trusts
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Upon the beneficiary’s death; remaining funds in
the account are subject to a Medicaid Payback
Provision.
Third Party Trusts –
Unfunded or Funded
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May be setup by parents, grandparents, siblings, aunts
and uncles or friends.
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Used frequently to by parents to plan for the Future:
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Set up as part of your estate planning process to protect
assets and services that your loved one is receiving.
Avoid probate to have funds available immediately.
Ensure your loved one has a way to obtain the items, services
or the extra’s you want to make sure they have.
These can be funded during your lifetime or left unfunded
until your passing.
Third Party Trusts –
Unfunded or Funded
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May be established by a private attorney or
institution.
May be established as part of a pooled trust
program
Why Choose A Pooled Trust?
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Pooled trusts are administered by non-profit agencies professional staff, greater sensitivity and individualized services.
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Pooled trusts offer professional investment management by a
bank.
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There are no minimum or maximum funding requirements
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They are more affordable for families or individuals
What Can I Use
The Trust For?
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Dental Care Costs
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Trips – visiting siblings; going to the beach
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Renting a tux for a cousin’s wedding
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Pre-need Expenses
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Anything not covered by Medicaid or SSI
What Can The Trust
Not Be Used For?
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Recipients of SSI cannot use the trust to pay for food and shelter; including
electricity, gas and water bills, property taxes, homeowners insurance and
condo association fees.
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For self Funded account holders, the trust cannot pay for burial or funeral
expenses for the beneficiary once they pass away.
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The Trust can not hold loans
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The Trust can not pay cash to the beneficiary.
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The trust cannot make gifts or use funds for anyone other than the
beneficiary
How Do I Access the Funds
Once they are in the Trust?
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Easily. You complete a simple disbursement request form stating the purpose
of the request, amount of the request and to whom to send the check.
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In many cases, supporting documentation is needed, such as a receipt or bill.
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Then send the request form to The Arc.
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We understand that everyone is different and we can be creative in accessing
funds in other ways as well; such as direct bills.
How Much Does it Cost?
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The establishment fee for the Special Needs Trust with The Arc of Northern
Virginia is $1050.00.
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The annual fee for an unfunded account in $65.00 until the account becomes
funded.
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The Foundation of The Arc of Northern Virginia bills 75 basis points
annually of the individuals account. (.0075%) (subject to change)
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SunTrust Bank bills 90 basis points annually. (.0090%) (subject to change)
Why Choose
The Arc of Northern Virginia?
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The Arc of Northern Virginia has been a leading advocate for individuals and
families with disabilities for 45 years.
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We have the knowledge, expertise, and sensitivity to meet your needs.
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Our pooled trust has been in existence for over 8 years.
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To date, our trust currently manage over $3.2 million dollars with $2 million
in future dollars
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We have experts available with whom we consult about changes in
regulations.
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We bring you this service in partnership with SunTrust Bank, a leader in the
financial services industry.
Why Do I Need To Plan?
We are all fortunate to be here today…
But what about tomorrow…