Are You Ready To Establish a Trust?
Whether you are an individual with a disability, a family member, guardian or an attorney exploring the establishment of a trust, The Disability Foundation will guide and direct you each step of the way. The information contained here is to help you understand the process, but please don’t attempt to establish a trust without support. It is important to realize that once trusts are established, they are irrevocable. Therefore, it is imperative that you fully understand each one. Our services are free of charge and we enjoy helping families and individuals make choices about their financial future.
If, after reading the steps outlined below, you have more questions or you’re ready to secure a trust, please contact us. We can schedule an appointment to answer any questions you might have, and if and when you’re ready, we’ll help you establish the trust. In most cases, we can come to your home, meet at our offices or you can select a location convenient for you. We will explain the options with each trust and go into detail so that you can make an informed decision.
Once you have made a decision to establish an Ohio Community Pooled Trust, the steps are as follows:
- Determine which trust you’d like to establish
- Complete the correct Joinder Agreement:
The following information will be required to complete either Joinder Agreement:
- The Grantor’s (person who establishes the trust) full name, address, telephone number, date of birth and contact information
- Names, addresses and contact information for each person identified by the grantor as the Personal Representative (see more below)
If establishing a Flexible Spending Trust, the Grantor will need to identify what they wish to be done with any remaining funds after the beneficiary’s death:
- 25% will automatically remain with The Disability Foundation to benefit others with disabilities
- The remaining 75% may be distributed as follows:
- All of it may be identified to stay with The Disability Foundation
- Beneficiaries may be identified, however before any beneficiaries may receive moneys, the moneys must be used to reimburse the state of Ohio for all Medicaid expenditures made on behalf of the beneficiary, during their lifetime.
- The Beneficiary will complete a W9 (in the name of and signed by the beneficiary)
- The Personal Representative will complete a “Duties Of The Personal Representative” form
- The Grantor will read and sign a “Memo to Donors” form
- The Grantor will provide documentation of the beneficiary’s disability
- The Grantor will provide the funding for the trust (via check, or electronic deposit).
Following final approval by The Disability Foundation, a fully executed copy will be sent to the person establishing the Trust (unless that person resides in a long-term care facility where receipt of mail may not be private), the attorney identified in the Joinder Application (if applicable), and the Personal Representative.
We recommend that you notify SSA once a trust has been established to avoid problems in the future. Please note that Special Needs Pooled Trusts are regulated by the Social Security Administration so transparency is valuable. The Disability Foundation does not notify any government agency that a trust has been established, but will provide an explanatory letter for benefit applications or re-determinations if requested by the Personal Representative.
Personal Representative’s Responsibilities
The role of Personal Representative is very important. This is the person who communicates to The Disability Foundation on behalf of the Beneficiary. A competent adult can serve as his or her own Personal Representative.
The Personal Representative is the only person who can request a distribution from the trust. Distributions from a Disability Foundation Trust must be for the benefit of the Beneficiary; a distribution from a Pooled Medicaid Payback Trust must be in the “sole benefit” of the Beneficiary. These types of distributions, generally referred to as “supplemental services,” are those items or services that are not covered by insurance or a government program, but supplement and enhance the quality of life of an individual with a disability.
In addition to submitting a Distribution Request, the Personal Representative is also responsible for receiving paper statements, receiving tax documents, communicating with The Disability Foundation regarding address changes for the Beneficiary or Personal Representative, and notifying The Disability Foundation when any party has died, such as the Grantor or Beneficiary.
