What kind of trust is right for me?
Supplemental Needs Trusts
Supplemental Needs Trusts are designed to protect assets and offer supplemental financial assistance to individuals with disabilities while also allowing them to create or maintain eligibility for government benefits such as Medicaid (MA) and Supplemental Security Income (SSI).
Common Supplemental Needs Trusts
A pooled trust is a type of trust where funds from multiple beneficiaries are pooled (combined) for investment purposes, but each beneficiary has their own sub-account. This allows for more efficient management of trust funds and can provide cost savings for beneficiaries who might not otherwise have access to professional trust management services. While this type of trust is often created in reaction to an individual with disabilities having received funds unexpectedly, RCFS will accept Supplemental Needs Pooled Trust Joinder/Master Trust Agreements that have been completed, dated, and signed, but are not immediately funded. This is a great financial planning tool that is immediately available to accept any and all excess assets that could render an individual ineligible to receive benefits.
Common Support Trusts
This type of trust is usually established by a parent, grandparent or other family member, and the funds are managed by a trustee. The trustee can disburse the funds for qualifying expenses such as tuition, books, and room and board. The trust can have specific conditions or restrictions on how the funds are used, and any unused funds may revert to the trust or be distributed to the beneficiary.