2011 Report from The Arc Master Trust

February 8th, 2012 by

As Trust Director for The Arc Master Trust, I am happy to report another strong year for the Trust – which will celebrate its 24th anniversary on October 24th this year.

The Arc of Indiana Master Trust was founded in 1988. Trust I is The Arc of Indiana’s original trust. The intent of Trust I is to provide parents with a reliable way to supplement government benefits their children receive, such as Medicaid and Supplemental Security Income (SSI), when they are no longer there to provide for them.

Trust II was established in 1995 in response to a law passed by Congress in 1993 allowing individuals receiving government benefits to fund their own trust.

In 2011, 44 new people enrolled in Trust I and 201 new people enrolled in Trust II.

As of December 31, 2011 there were 2,084 open trusts with The Arc of Indiana Master Trust.  Of those, 1,405 people are actively receiving distributions from either their Trust I or Trust II accounts. 155 accounts are funded but are not currently receiving distributions, and 524 Trust I accounts have not yet been funded.

Trust I Investments had a positive rate of return in 2011 of +.12%. This fund is conservatively invested and very closely monitored to ensure the safety of our beneficiaries’ trust money. The Arc Master Trust invests beneficiaries’’ money as if they have retired and this is their retirement money.

The following table profiles investments as of December 31, 2011:

Mutual Fund – Int. Government/Bond

$13,052,952

44.38%
Mutual Fund – Large Cap Equity

$ 8,134,607

27.66%
Miscellaneous Cash Equivalents – Taxable

$ 2,451,488

8.33%
Mutual Fund – Foreign Stock

$ 1,926,593

6.55%
Mutual Fund-Small Cap Equity

$ 1,699,903

5.78%
Mutual Fund – Domestic Hybrid

$ 786,344

2.67%
Other   $ 1,360,226

4.63%

The total on deposit at The National Bank of Indianapolis for Trust I and Trust II at December 31, 2011 was $42,814,720.

The Arc Master Trust Team:
Melissa Justice, Trust Director
Brandi Davis, Assistant Trust Director
Katie Batagianis, Trust Account Manager
Tom Ewbank, Senior Trust Officer

The Arc Master Trust Family Advisory Committee
Alan and Phyllis Hamilton, Indianapolis
Sharon Hauss, Bloomington
Kylee Bassett Hope,  Indianapolis
Kevin McDowell, Indianapolis
Greg Smith, Brownsburg
Sara Walker, Indianapolis

Learn More!  Visit us at: www.thearctrust.org



Pooled Special Needs Trusts vs Private Special Needs Trusts

December 14th, 2011 by

When I give presentations on The Arc Master Trust, I am frequently asked the differences and advantages of Pooled Special Needs Trusts versus private Special Needs Trusts.

Pooled Special Needs Trusts (PSNT), such as The Arc Master Trust, are administered by not-for-profit organizations, while private Special Needs Trusts (SNT) are typically administered by a bank or other financial institution.

Advantages of using The Arc Master Trust include:

  • Lower administrative costs
  • Trained staff that is skilled and knowledgeable in administering Special Needs Trusts.  This is not just another segment of our business, the PSNT is our business
  • The Arc of Indiana has information and connections all over the State.  The Trust has access to all of that information, so regardless of the issue facing the beneficiary we have the resources to be able to help him or her
  • Staff is experienced and knowledgeable about a wide range of issues regarding people with disabilities as well as the rules for SSI and Medicaid
  • Lower minimums to fund the trust
  • Peace of mind, knowing that the trust will not approve disbursements that might cause the beneficiary to lose his or her benefits

Some advantages of using a Private Special Needs Trust are:

  • Greater control of the investment
  • Sometimes there is control over who the Trustee of the trust is, if a family member or friend has experience and knowledge of Social Security and Medicaid this may work well for some families
  • Depending on the bank or investment company there maybe staff which are designated to work only with your beneficiary

Regardless of where you decide to open your Special Needs Trust it is important that you have confidence in the organization actually administering your trust.  I encourage you to question the organization to determine if they are knowledgeable about government benefits, how they administer their Special Needs Trust, and if they understand how disbursements from the trust need to be handled so that benefits aren’t endangered or discontinued.

Please don’t hesitate to call me with any questions on establishing a Pooled Special Needs Trust with The Arc of Indiana or a private Special Needs Trust with a financial institution.  I can be reached by calling The Arc’s offices at 317-977-2375 or 800-382-9100.  Learn more about The Arc Master Trust by visiting www.thearctrust.org

Melissa Justice is the Trust Director for The Arc of Indiana Master Trust



New Service for Trust Beneficiaries, Circle of Friends

November 15th, 2011 by

The Arc Master of Indiana Trust has begun a new project, Circle of Friends, in response to a need that has become increasingly apparent to us as we serve our Trust Beneficiaries.

The project has two goals.  The first goal is to help those Beneficiaries that have a funded trust to be able to spend their trust money appropriately.  Occasionally Beneficiaries do not have anyone to contact the trust office to let us know when something is needed and so the trust does not get spent prior to the beneficiary’s death.  It is very important to us that the Beneficiary has access to his or her trust funds to get what he or she wants and needs.

The second goal is for parents who would like to set up a Trust I account to be funded upon their death, but who do not have other family or friends that can be their child’s contact person, again to let us know what he or she wants or needs to be paid from the trust account.

The Circle of Friends project, designed to meet the above goals, will primarily be carried out through volunteers, along with a paid coordinator.  We recently brought on Willaine Sandy to serve as the Coordinator for Circle of Friends.  Willaine first came to The Arc a few years ago as a Family Advocate for  The Arc Network, and is continuing to work with The Arc Network as a Family Advocate Community Specialist.

Initially the project will focus on Indianapolis, Fort Wayne and Evansville.  Once it is established, the goal will be to offer this service across the state.

If you or someone you know is interested in being a Circle of Friends volunteer, please contact me or Willaine Sandy by calling us at 317-977-2375, 800-382-9100 or by email at mjustice@arcind.org or wsandy@arcind.org.

Melissa Justice is the Trust Director of The Arc of Indiana Master Trust



Helping Marilyn Achieve Her Dream to “Get Out of Here”

September 30th, 2011 by

The best part of my job as Director of The Arc Master Trust is working with our trust beneficiaries to get not only basic necessities, but also the nice extras that we all want in life.  Best of all, sometimes we help people change their lives and achieve their dreams.

In October of 2010, I met with a woman who I will call Marilyn, who has lived in a nursing home on the near west-side of Indianapolis for nearly 30 years.

My meeting with Marilyn was to finalize paperwork to set up a Trust II account on her behalf.  Her mother had recently passed away and she was due to receive an inheritance from both of her parents.

The first thing she said to me when I asked how The Arc Trust could best help her is,  “I want out of here.  I want my own apartment. I do not like living here and I want to be closer to my family and friends who all live in Lafayette.”

I looked at Marilyn and said, “Ok, we’ll see if we can get this done.  It may take a while, so you will need to be patient, but we will work make this happen for you.

Last week we signed the papers to move Marilyn to Lafayette into her temporary residence at a very nice Assisted Living Facility where she will have her own room, including a small kitchenette.  The ultimate goal is for Marilyn to move into a more affordable apartment, that has the necessary supports, access to transportation, and nearby doctors’ offices and stores.  Most importantly, Marilyn will soon live close to family and friends.

Marilyn’s trust through The Arc Master Trust, funded with the money her parents left for her, has allowed her to realize her dream.  It is more than a great day at work when you can help make that happen.



A Brief Primer on The Arc of Indiana Master Trust II

August 1st, 2011 by

The Arc of Indiana Master Trust II was established in 1995 in response to legislation passed by the United States Congress in 1993.  (In fact, The Arc’s Trust Director at the time, Alan Kemp, was instrumental in working with staff of The Arc US to craft the legislation).

In Indiana, thousands of people have benefited from the law that made  Trust II possible.  People who receive an inheritance, lump sum back-payment from Social Security or lawsuit settlement can put those funds into a Special Needs Trust rather than spending the money quickly just to stay eligible for government benefits. 

The other common reason we establish Trust II accounts is when individuals have too much money at the end of the month.  This is generally from either their Social Security check or from earnings.  Any excess at the end of the month can be put into the trust so that they can remain eligible for Social Security and Medicaid and yet have the money set aside in the trust to use in the future.

There are actually three options if someone has more than the $1,500 they are allowed to have to remain eligible for Medicaid or $2,000 for SSI.

The first option is to spend the money.  The excess funds can be spent, but documentation of the expenditures should be saved.  

The second option is to prepay an indivdual’s funeral and burial expenses.  You can go to your local funeral home and set up what is referred to as an Irrevocable Funeral Trust.  This is generally an insurance policy and will not interfere with the government benefits or count as a resource (as long as it is an Irrevocable Funeral Trust).

The third option is to establish a Special Needs Trust (The Arc Master Trust II).

You can do all of these three things if there is sufficient money and if you have time.  If the person receives Medicaid you only have until the last day of the month in which they received the money or they will lose their Medicaid benefits.  SSI gives you a couple of months to spend the money down to the $2,000 limit.

If you don’t have time to purchase the needed items and/or set up the Irrevocable Funeral Trust, these things will probably be eligible to be paid for out of the Special Needs Trust once it is established.

If you spend part of the money and set up the Irrevocable Funeral Trust be sure to keep the documentation on how you spent the money to show Social Security and Medicaid when they require this information.

The Arc Trust currently has approximately 1,100 persons currently enrolled in Trust II, with a total value of approximately $12 million.

If you would like more information on Trust II, please contact The Arc Trust office at 317-977-2375 or 800-382-9100. The trust’s website has a lot of valuable information: www.thearctrust.org.  

I can always be reached at mjustice@arcind.org - please do not hesitate to contact me!

Melissa Justice is Director of The Arc Master Trust.



Will You be Medicaid Eligible When it is Finally Your Turn?

June 15th, 2011 by

I spoke with a mom this week who was understandably very stressed.  After waiting for years, her son was finally targeted for a Support Services Medicaid Waiver.  In other words, his name had come to the top of the waiting list and his family could begin the process of starting some greatly needed therapies and services.

However, as she began to work through the process, they hit a snag.  Her son isn’t eligible for Medicaid because he has assets that are more than the $1500 limit for Medicaid.  When her son was very young, his parents opened an IRA in his name intending to save money for his future.   Unfortunately, this account is considered his asset and is currently worth more than $1500.

Many people get confused about Medicaid eligibility with waivers because they think that income and assets don’t matter if a child is under age 18.  This is only partially true.  Senate Bill 30 allows the parent’s income and assets to not be counted when looking at Medicaid eligibility for a waiver for children under age 18.  HOWEVER, the income and assets of the person who will be receiving the waiver services will always be considered regardless of their age.  Those limits right now are 300% of SSI (or $2022/month) income and $1500 for assets/resources.

Fortunately, for the family that I spoke with this week, they should be able to move their son’s assets into a special needs trust like The Arc of Indiana Master Trust.  Assets held in a special needs trust are not counted when determining Medicaid eligibility.  Unfortunately, when decisions about resources have to be made quickly, there can be fees and penalties involved.  So, it is usually better to plan ahead and avoid a situation that might affect eligibility for Medicaid if your loved one is on a Medicaid waiver waiting list.

If you have questions about Medicaid eligibility with a waiver, please do not hesitate to call me at The Arc of Indiana.  If you would like to know more about The Arc of Indiana’s Master Trust, please contact our trust director, Melissa Justice.  We can both be reached at 317-977-2375 or 1-800-382-9100.

Jill Ginn is Manager of  The Arc Network, a program of The Arc of Indiana



Spreading the Word about The Arc Master Trust at the Special Olympics Indiana State Games

June 8th, 2011 by
Melissa Justice, Trust Director, at the Special Olympics Indiana State Games

Melissa Justice, Trust Director, at the Special Olympics Indiana State Games

Last Friday I staffed the exhibit table at the Special Olympics Indiana State Games in Terre Haute.  I had a great time and I know the athletes and their families did as well.  Being at events like this give me a great opportunity to meet new families that are interested in The Arc Trust as well as families that have already enrolled in the Trust.

The Arc of Indiana started Trust I in 1988.  Trust I was established in response to a need felt by families who wanted to be able to provide for their child with a disability after the parents had passed away.  Prior to the law being passed allowing Trust I to be possible, families just had to exclude their child with a disability from their estate plan.

With Trust I you do not have to exclude your child with a disability.  This trust will allow your child to remain eligible for all of the benefits he or she is currently receiving (and keep them eligible for new benefits in the future) and yet have money in the trust that would otherwise make them ineligible. 

The Trust is established at the same time that the will, life insurance or the living trust is updated to name the Trust to receive a portion of the money for their child.  Generally the Trust isn’t funded until the last parent passes away (although it can be funded prior to death). 

Once the parent’s have passed away and the money has come into the Trust for their child, then the Trust “steps into the parent’s shoes” and provides those things that the parents had been paying for prior to death.  The money that has been left in the Trust can be used for a wide variety of things.  I generally tell parents that if they look at their checkbook at how they have spent their money in the last month that is how the Trust has used the money for the benefit of the beneficiaries.  It really isn’t much different!

Trust I is designed to last the expected lifetime of the child (80 years), but if the child lives beyond this age, then The Arc has the Remainder Fund to continue to provide for them if they have outlived the money the parents have left them. 

Please contact me if you would like additional information regarding Trust I or would like to schedule an appointment.  You can email me at mjustice@arcind.org or call 317-977-2375 or 800-382-9100.  You can learn more about The Arc Trust by visiting us at www.thearctrust.org

Melissa Justice is the Trust Director for The Arc of Indiana Master Trust