Trust FAQ

As most of us are familiar with the conventional life-planning strategy of a health care proxy, will, or power of attorney, you may not be aware of the possibility of providing your loved one with alternatives with various trust options. A trust is a legal plan for placing funds and other assets in the control of a trustee for the benefits of an individual. It is a considerably less expensive alternative for the protection of an individual’s assets without having the individual declared incompetent.

The Arc of Bristol County works closely with individuals and family members or other interested parties to provide guidance for responsible life planning and making important choices for your future. With The Arc serving as Trustee, elders, individuals, and families benefit from professional investment management, detailed accounting of all disbursements, annual account updates, tax preparation and payments, and added protection from creditors—offering peace of mind in securing their financial investments

To schedule an appointment or for additional information, contact the Trust Services Coordinator at (508) 226-1445 ext. 3102.

With several estate planning options available, there is no “one size fits all” in assessing your own needs and the future of your loved one. The Arc of Bristol County will provide a comprehensive personalized plan by working directly with individuals and families in a caring and concerned environment, to develop options that maximize wealth preservation, maintain funding and eligibility requirements for government programs and public benefits, and prepare for long-term care. These services include wills, special or supplemental needs trusts, pooled trusts, health care proxies, powers of attorney, guardianships, representative payee, and Roger’s monitor.

A pooled trust is a trust established and administered by a non-profit organization. A separate account is established for each beneficiary of the trust, but for the purposes of investment and management of funds, the trust pools these accounts. For self-settled, or (d)(4)(C) pooled trusts, each sub-account is established by the person with a disability, a parent, grandparent, guardian, or a court, and the trust is funded with the assets of the person with a disability. The trust provides that, upon the death of the disabled beneficiary, if there are funds remaining in the beneficiary’s sub-account, the trust must pay to the state an amount up to the total amount of Medicaid assistance provided to the beneficiary, to the extent that the funds are not retained by the trust. The pooled trust should be irrevocable to avoid being treated as a resource.

Third-party pooled trust sub-accounts can also be established by family members who want to leave inheritances for persons with disabilities. Because these accounts are not funded with the assets of the person with a disability, they do not include a Medicaid payback provision.

Elder law attorneys often assist persons with disabilities who receive public benefits, including Supplemental Security Income (SSI) and Medicaid, and receive an unexpected inheritance, divorce settlement, or personal injury settlement or award. The receipt of these funds may make this person ineligible for public benefits.

The client could purchase exempt resources, and then reapply for benefits; however, in many cases, there are no appropriate exempt resources for the person with disabilities to purchase. The person with a disability would then be ineligible for public benefits until these funds are spent down. The person could give the funds away, however, the gifts would result in a period of ineligibility for SSI and Medicaid long-term care benefits. If under 65 years of age, then the person could transfer the funds to a (d)(4)(A) Special Needs Trust (SNT). A fourth alternative is to transfer the funds to a (d)(4)(C) (“Pooled Trust”) subaccount.

The person with a disability under 65 years of age may create his or her own pooled trust sub-account. Because the pooled trust is managed by a non-profit organization, it is not necessary to find a trustee who is willing to manage the trust. Additionally, because the trust funds are pooled for investment and management purposes, the administrative expenses of these trusts are frequently lower than those of a (d)(4)(A) SNT.