Stand-Alone Trusts: Guide for Attorneys
For attorneys and legal professionals
Setting up a stand-alone special needs trust with PLAN as Trustee
PLAN of MA & RI serves as Trustee of stand-alone first-party (d)(4)(A) and third-party special needs trusts for clients in Massachusetts and Rhode Island. This page walks through PLAN’s process from the first client conversation to annual follow-up, with links to every form and guide you’ll need.
Requirements at a glance
$750,000 liquid minimum
Stand-alone trusts start at $750,000 liquid.
PLAN's guidelines
The trust is drafted pursuant to PLAN's Stand-Alone Trust Guidelines.
Review before signing
PLAN reviews the draft and application before the trust is executed.
W-9s for all parties
W-9 forms for both the beneficiary and the donors.
The process, step by step
Most stand-alone trusts follow the same path. PLAN is available to talk through any step with you.
Talk with your clients
Discuss whether a stand-alone trust fits the family’s goals and funding. A stand-alone trust requires at least $750,000 in liquid assets. For smaller amounts, consider PLAN’s pooled trusts. A first-party (d)(4)(A) trust must be established before the beneficiary turns 65.
Share PLAN's information with your clients
Send the family the First-Party or Third-Party Informational Guide.
Optional: the donors can meet with PLAN to discuss the process, PLAN’s services and what to expect. Call 617-244-5552 (MA) or 401-234-8444 (RI) to arrange it.
Draft the trust
Draft the trust instrument pursuant to PLAN’s Stand-Alone Trust Guidelines, naming PLAN of MA & RI as Trustee.
Very important step
Send the draft and application to PLAN for review
Send PLAN the draft trust and the completed application: first-party or third-party. Email the draft to [email protected]. PLAN’s in-house counsel reviews it to confirm the provisions in the Stand-Alone Trust Guidelines are included, and will contact you within one to two weeks with questions, comments and next steps. Please don’t execute the trust until this review is complete.
Execute the trust and send originals to PLAN
Execute two original trust instruments, then:
- If PLAN needs to sign: send both originals to PLAN.
- If PLAN does not need to sign: send one original to PLAN for its records.
Include W-9 forms for both the beneficiary and the donors.
Provide the Life Care Plan
After enrollment is complete, prepare and provide the Life Care Plan to PLAN.
Annual follow-up
PLAN will be in touch on an annual basis to learn if any of the information has changed.
Forms, guides and guidelines
Applications
Information guides
Planning and administration
After the trust is funded
Service Coordinators start at funding
Each beneficiary is assigned a PLAN Service Coordinator, a licensed social worker. Service Coordinators do not provide services until the trust is funded.
Disbursements follow PLAN's guidelines
Payments from the trust are reviewed under PLAN's Disbursement Guidelines so they don't put Medicaid, SSI or housing assistance eligibility at risk.
Questions attorneys ask
Important
What does PLAN review before the trust is signed?
PLAN’s in-house counsel reviews the draft trust and the application to confirm that the provisions in the Stand-Alone Trust Guidelines are included. Email the draft to [email protected], and expect to hear back within one to two weeks with questions, comments and next steps. Please send the draft before execution.
The guidelines cover, among other provisions:
- Trustee authority to make administrative amendments, hire professionals, resign and appoint a successor, and decant
- PLAN serving as sole Trustee, with no trust protector or advisor oversight of investments or distributions
- Grantor trust treatment for first-party trusts and non-grantor treatment for third-party trusts
- No interest in real property held by the trust
- Trust situs under Massachusetts or Rhode Island law
- Accountings no more often than annually, and identifiable remaindermen
What is the minimum to establish a stand-alone trust with PLAN?
$750,000 in liquid assets, such as cash, stocks, bonds or mutual funds. Under PLAN’s guidelines, the trust may not hold any interest in real property. For smaller amounts, PLAN’s first-party and third-party pooled trusts have no minimum.
How many originals should we execute, and where do they go?
Execute two original trust instruments. If PLAN needs to sign, send both originals to PLAN. If PLAN does not need to sign, send one original to PLAN for its records. Include W-9 forms for the beneficiary and the donors.
Can the donors meet with PLAN?
Yes. Donors are welcome to meet with PLAN to discuss the process, PLAN’s services and what to expect once the trust is funded.
When does the Service Coordinator start working with the beneficiary?
Once the trust is funded. Service Coordinators, who are licensed social workers, do not provide services until then.
What happens after enrollment?
Prepare and provide the Life Care Plan to PLAN. PLAN will be in touch on an annual basis to learn if any of the information has changed.
Questions about a stand-alone trust?
Call PLAN at 617-244-5552 (Braintree, MA) or 401-234-8444 (Providence, RI). Visits are by appointment.