Special needs trusts
This presentation is the property of its rightful owner.
Sponsored Links
1 / 20

Special Needs Trusts PowerPoint PPT Presentation

  • Uploaded on
  • Presentation posted in: General

Special Needs Trusts. The Arc of Northern Virginia. What Is A Special Needs Trust?.

Download Presentation

Special Needs Trusts

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript

Special needs trusts

Special Needs Trusts

The Arc of Northern Virginia

What is a special needs trust

What Is A Special Needs Trust?

  • 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

Why Do I Need A Special Needs Trust?

  • 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

Why the purpose of a Special Needs Trust?

  • 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.

  • Promote the dignity, comfort and happiness by providing supplemental care, treatment not otherwise covered.

Who is eligible for a special needs trust

Who is Eligible For A Special Needs Trust?

Anyone with a physical, mental or intellectual disability; as defined by the Social Security Act


Receiving Medicaid or Disability Income

Types of special needs trusts

Types of Special Needs Trusts

Self-Funded Trusts

D4 (a) - Private

D4(c) - Pooled

Third Party Trusts



Self funded trusts d 4 a

Self-Funded Trusts – d 4 (a)

  • 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

Self-Funded Trusts – d 4 (c)

  • 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

What Is A Pooled Special Needs Trust (a.k.a. d4c)

  • Managed by a Non – Profit organization

  • Funds from individual participants are pooled for fee and investment purposes

  • Fees are calculated based on the total amount of pooled funds

Self funded trusts

Self-Funded Trusts

  • Most Self-funded accounts are established due to:

    • A personal injury settlement

    • An inheritance

    • Any other money that threatens benefits

Self funded trusts1

Self-Funded Trusts

  • Upon the beneficiary’s death; remaining funds in the account are subject to a Medicaid Payback Provision.

Third party trusts unfunded or funded

Third Party Trusts –Unfunded or Funded

  • May be setup by parents, grandparents, siblings, aunts and uncles or friends.

  • Used frequently to by parents to plan for the Future:

    • 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 funded1

Third Party Trusts –Unfunded or Funded

  • May be established by a private attorney or institution.

  • May be established as part of a pooled trust program

Why choose a pooled trust

Why Choose A Pooled Trust?

Pooled trusts are administered by non-profit agencies - professional staff, greater sensitivity and individualized services.

Pooled trusts offer professional investment management by a bank.

There are no minimum or maximum funding requirements

They are more affordable for families or individuals

What can i use the trust for

What Can I Use The Trust For?

  • Dental Care Costs

  • Trips – visiting siblings; going to the beach

  • Renting a tux for a cousin’s wedding

  • Pre-need Expenses

  • Anything not covered by Medicaid or SSI

What can the trust not be used for

What Can The Trust Not Be Used For?

  • 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.

  • For self Funded account holders, the trust cannot pay for burial or funeral expenses for the beneficiary once they pass away.

  • The Trust can not hold loans

  • The Trust can not pay cash to the beneficiary.

  • 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

How Do I Access the Funds Once they are in the Trust?

  • 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.

  • In many cases, supporting documentation is needed, such as a receipt or bill.

  • Then send the request form to The Arc.

  • 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

How Much Does it Cost?

  • The establishment fee for the Special Needs Trust with The Arc of Northern Virginia is $1050.00.

  • The annual fee for an unfunded account in $65.00 until the account becomes funded.

  • The Foundation of The Arc of Northern Virginia bills 75 basis points annually of the individuals account. (.0075%) (subject to change)

  • SunTrust Bank bills 90 basis points annually. (.0090%) (subject to change)

Why choose the arc of northern virginia

Why Choose The Arc of Northern Virginia?

  • The Arc of Northern Virginia has been a leading advocate for individuals and families with disabilities for 45 years.

  • We have the knowledge, expertise, and sensitivity to meet your needs.

  • Our pooled trust has been in existence for over 8 years.

  • To date, our trust currently manage over $3.2 million dollars with $2 million in future dollars

  • We have experts available with whom we consult about changes in regulations.

  • We bring you this service in partnership with SunTrust Bank, a leader in the financial services industry.

Why do i need to plan

Why Do I Need To Plan?

We are all fortunate to be here today…

But what about tomorrow…

  • Login