SELF FUNDED TRUSTS
Trust Options
Life’s Plan offers different options for meeting the supplemental service needs of people with disabilities and the elderly without jeopardizing state and federal public benefits. The options are a Pooled Third Party Supplemental Trust, and the Pooled Self Funded OBRA Payback Trust, each of these Trusts is operated by Life’s Plan, Inc.
The goal of each of these Trusts is to enhance the quality of life of the beneficiary by providing a financing mechanism which operates through an individualized Life Care Plan to arrange for supplemental support and services for the individual with disabilities.
Once a family has determined the mechanism which best addresses their situation and has created a Life Care Plan, the family will be advised to meet with an attorney to formalize their arrangement.
POOLED
Third Party Pooled Trust
The Third Party Supplemental Trust is invested in a pooled trust which is available to individuals with disabilities, the elderly and their families to permit them to utilize family assets to supplement current state and federal benefits by providing additional services to the beneficiary without jeopardizing their means tested entitlements. This financial entity has been approved by the Social Security Administration and the Department of Healthcare and Family Services.
Funds remaining in the Third Party Pooled Trust upon death of the trust beneficiary shall be distributed as directed by the grantor in one of two ways. Option One- Life’s Plan Trust retains 25% of the remainder, 15% of which is designated to the trust as a 501 (c) 3 organization for self sustaining administrative costs to provide trust services to people with disabilities, while 10% is retained to be used in a charitable fund that grants funding to people with disabilities or other organizations that provide services to people with disabilities or directly to i. The remaining 75% shall be distributed to other beneficiaries, organizations or charities according to the grantor’s wishes. Option Two- The entire balance of the beneficiary’s trust is distributed to beneficiaries as the grantor designates. This trust meets all state and federal regulations. The trust has also been reviewed and approved by the Social Security Administration and the Illinois Department of Healthcare and Family Services.
POOLED
Self Funded Pooled Payback Trusts (D4C)
The Life’s Plan Self Funded Payback Trusts are invested in a pooled trust with each beneficiary holding a separate sub account. These trusts are available to individuals with disabilities, the disabled elderly, and their families to allow them to use their individual or spousal assets to supplement their needs while allowing them to qualify or continue to maintain or receive Supplemental Security Income (SSI) and/or Medicaid. This is an ideal trust option as well for investments such as assets from an inheritance, personal injury settlements or any awards received.
Funds remaining in the Pooled Payback Trusts upon death of the beneficiary will be paid back to the State up to and no more than what is owed for the beneficiary’s total medical costs under Medicaid. The balance of an Individual pooled trust subaccount is then paid out as designated by the creator of that trust. In a pooled payback trust, 15% is retained for self sustaining administrative costs and 10% is retained for a charitable fund to grant funding resources to people with disabilities or organizations that provide services to people with disabilities. The Department of Healthcare and Family Services (Medicaid) is then paid back the remainder for the costs of the beneficiary’s public benefits. The remainder left is then distributed as designated by the creator of the trust. This trust meets the Social Security Administration POM SI 01120.201 rules and federal regulations under 42 U.S.C. Section1396p (d)(4)(c). The trust has been reviewed and approved by the Social Security Administration and the Illinois Department of Healthcare and Family Services
