Special Needs Trusts

A Third Party Lifetime Advocacy Trust is most often established by the parents of an individual with a disability, although it can be established by anyone on behalf of this individual. The trust can be funded at any time after establishment. Most commonly, this funding comes from the grantor’s will after passing. A Third Party Trust can be funded with money from anyone other than the beneficiary; their own money cannot be put into this type of Special Needs Trust.

There are several Third Party Trust options available, including Revocable, Irrevocable, and Irrevocable with Insurance. These  options can be discussed with PLAN of CT in addition to an attorney who practices in this area of law. 

What are the benefits of a Third Party Trust?

The individual named in the trust as the beneficiary is often already receiving governmental support such as SSI, and/or Medicaid. Therefore if money were to be left outright to them, this individual would no longer be eligible for their public benefits. The grantor can choose remainder beneficiaries for distribution of funds if the original beneficiary passes away before the trust has been expended.

PLAN of CT offers several trust options depending on the beneficiary’s particular situation, and we remain the only organization in Connecticut that can administer a Special Needs Pooled Trust. Connecticut state legislature granted PLAN of CT the authority to act as trustee of Special Needs Trusts in 1993. 

What are the Benefits of a Pooled Trust?

The PLAN of CT Pooled Trust is the only trust in our state that can be contributed to by an individual with a disability who is typically over the age of 65. The PLAN of CT Pooled Trust allows an individual with a disability to fund a trust account with his or her own assets, retain a lifetime benefit from those assets, and still qualify for public benefits. Many Pooled Trust subscribers are able to deposit excess monthly income into the trust to qualify for important waiver programs that maintain and improve their health and well-being. 

Who can benefit from the Pooled Trust?

A Pooled Trust is a good idea for an individual of any age who has a disability, and who:

• Wants to stay in their home with home care services, but is over the income/asset limit for that program
• Is told by the state they do not qualify for a Medicaid Waiver program because their income/assets exceed the program limits
• Inherits money that could endanger the home care or long-term care services they are already receiving through a Medicaid Waiver
• Is in an assisted-living arrangement where the State of Connecticut provides the home-care portion of the cost
• Would like to establish and fund his/her own trust, while remaining on public benefits, with money received from an inheritance, an insurance payment related to an accident, a settlement from a divorce proceeding, or back payment from Social Security.

What happens to an Individual’s funds remaining in the Pooled Trust after they have passed away?

According to federal regulations, upon the beneficiary’s death any remaining funds inside the trust are either left to the PLAN of CT Charitable Trust for the benefit of other individuals with disabilities, or reimbursed to any states that provided Medicaid services.

A Self-Settled trust is established and funded by a person with disabilities under the age of 65 with their own assets. If funds remain in the trust after the death of the beneficiary, state Medicaid agencies are repaid from the trust for benefits the beneficiary received during their lifetime. This is commonly referred to as the “payback provision”. After Medicaid is paid back, any remaining funds can be left to people or charities of the individuals choosing.

What are the benefits of a Self-Settled Trust?

The Self-Settled Trust is used when an individual receives a direct inheritance, a back payment from Social Security, a settlement, or a lottery win. This trust can also be used for excess income, like the Pooled Trust, for people under the age of 65. As noted above, any additional remaining funds may be left to a grantor’s designee (after funds are used to pay back the state(s) for Medicaid services provided). PLAN of CT does not require any remaining funds be left to our organization.

• Call PLAN of CT to speak or meet with the Outreach Coordinator for more information on our trust options.
• Select and meet with a PLAN of CT Professional Member (attorney)*. A map and list of member attorneys can be accessed on our website or provided by the Outreach Coordinator.
• Complete the appropriate legal forms (Trust Adoption Agreement or Subscriber Agreement) with your attorney and other required supporting documents.
• Submit a check to PLAN of CT for the one-time establishment fee.

*Attorney fees are separate from PLAN of CT establishment fees.

FEES

PLAN of CT has a one-time establishment fee for any of our trust options (there is a reduced fee for any additional trusts within the same family.) The establishment fee is due upon submission of the trust application materials from your selected professional member attorney.

No additional fees are incurred until the trust becomes funded. Once funded, trusts incur fees based on our fee schedules for that particular trust. As a non-profit organization, we can keep our fees lower than most trustee options. 

Let’s start taking care of tomorrow, together.