The use of a trust fund can be an effective tool in estate planning for families with young, adult
children or older adults with disabilities. This is especially true when these individuals with disabilities rely on government entitlement programs to meet their basic needs. The use of these trust vehicles will assist in supplementing any public benefits which are being received. The additional financial security derived from using these long term planning tools can provide a person with a disability a greater opportunity to lead a more complete and fulfilled life.
Life's WORC is a private not-for-profit organization that provides comprehensive support to people with disabilities. We currently operate three types of trusts: a Self-Settled Pooled Trust, a Third Party Pooled Trust and a Surplus Income Trust.
The self settled pooled trust is for individuals or guardians who wish to protect the disabled person's proceeds received from personal injury awards, inheritances or social security settlements. It allows beneficiaries to access funds for medical expenses that Medicaid does not cover such as communication devices, motorized wheelchairs and specialty medical care. The proceeds from this trust can also be used to provide other life enriching experiences such as vacations, recreational activities and everyday items.
The third party pooled trust is funded with assets from parents, guardians, grandparents and others who wish to put aside funds for their disabled loved one without jeopardizing the person's Medicaid or SSI benefits.
It is the recommendation of the Trustees of the Life's WORC Trusts that parents set aside funds to allow their loved one to have access to needed resources not provided by government funding. This trust does not need to be funded by today's dollars. Sponsors can fund the trust upon their death by using life insurance proceeds. This trust ensures that funds will be available to your loved one when he/she needs them without risk to their Medicaid or SSI benefits.
The Surplus Income Trust allows you to deposit your monthly “Surplus Income” or the amount over the allowable income limit into the trust, instead of paying it to Medicaid. This trust will work best for older adults who receive Social Security and/ or Retirement benefits and need to qualify for Medicaid. The trust will use this money to pay your monthly expenses including mortgage, rent, electric, cable and telephone bills.
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