MassEcon Comparing PLAN’s Trusts

Comparing PLAN’s Trusts

Specifics of Each Trust

First Party Special Needs Pooled Trust

Third Party Special Needs Pooled Trust

Type of Trust

1st Party (Where donor is also the beneficiary)

3rd Party (Where donor is someone other than the beneficiary)

Year Master Trust Created

1995

2005

Service Coordination by Licensed Social Workers

Included

All-Inclusive Service Model?

Yes, include all communications with Service Coordinators, all disbursements from trust account, all services related to managing the trust, investment of funds, and annual statement.

Minimum Deposit?

No, but PLAN recommends funding of not less than $10,000

Timing of Distributions

7-10 Days

Annual Fees include trust, custody, investment management, and all disbursement fees

3% on the first $500,000

2.5% on the next $250,000

2% on the next $250,000, and

1.75 % on the balance over $1 million

Minimum annual fee of $500 has been waived by PLAN since the third quarter of 2017 to make services more accessible.

Future Funded Trusts Accepted?

Yes. Annual fees are waived until funding.

Enrollment Fee

$600-$750

$500

Annual Tax Preparation Fee

$210

 

$348

Trust Account Closing Fee

$500

$500

Final Tax Preparation Fee

$348

$348

Investment Models

Multiple

Investment Manager

Webster Private Bank

Account Remainder Distributions

Account remainders are distributed as follows:

To PLAN’s Community Fund to support others with disabilities; if a participant dies within two (2) years of joining the Trust, 10% of the remaining balance; if more than two (2) years after joining the Trust, 20% of the remaining balance.

After that charitable portion is deducted, Medicaid must be “paid back” the amount of the actual Medicaid payments the beneficiary received during his or her lifetime. That amount is determined by the state Medicaid agency.

Remaining funds are distributed in accordance with the wishes of the donor.

Remainder distributed according to the wishes of the donor.

Timing of Final Disbursements from the Trust

Final disbursements will be made 14 – 16 months after the date of death. This timeline allows for a Medicaid determination, tax statement preparation, and the one-year statute of limitations for creditors’ claims.

Final disbursements will be made 14 – 16 months after the date of death. This timeline allows for tax statement preparation and the one-year statute of limitations for creditors’ claims.