The Master Trust is a “third party trust” funded by someone other than the person with a disability.
When planning for the future of a loved one with a disability, a family can utilize a Master Trust to enhance the loved one’s quality of life and help protect his/her eligibility for government benefits.
The Master Trust is frequently used in combination with an overall estate or financial planning strategy. Funds can be placed in the Trust now (through a gift) or in the future (through life insurance or a Last Will and Testament). Anyone other than the person with a disability can create a Master Trust. Community Fund Ohio will administer and deliver those funds for the loved one’s benefit.
Any funds remaining after the lifetime of the person with a disability can be designated in the trust documents for funeral expenses, estate administration, or other individuals or charities.
Community Fund Ohio will accept a Master Trust with an immediate deposit or a Master Trust to be funded later. The balance in the trust must reach $15,000 before the funds can be used for the Beneficiary’s needs. Once the balance reaches $15,000, the funds can be used as permitted by distribution rules, without any ongoing minimum balance requirement.
Our Master Trust is commonly used:
- When a person with a disability has needs that are not covered by government benefits, such as clothing, home furnishings, technology, hobbies, and personal care.
- To plan for the financial future of a loved one with a disability.
- In combination with an overall estate planning or financial planning strategy.
- By a parent to leave a gift or life insurance proceeds to a child with a disability.
- By a sibling to provide for a brother or sister with a disability.
- By a professional or family member trustee confronting the unique challenges of special needs trust administration and seeking an experienced alternative.
Advantages of using our Master Trust:
- The Trust documents are created by Community Fund Ohio. Your attorney simply completes them for the Beneficiary to join the Trust.
- Community Fund Ohio updates our Trusts as federal and state laws change.
- Our Trusts have a professional Trustee, so you do not have to find a friend or family member with time and expertise to serve as Trustee.
- The person who establishes the Trust names a Designated Advocate who will request funds to meet the Beneficiary’s needs. All requests are reviewed by Community Fund Ohio to prevent prohibited or imprudent expenditures that could put eligibility for government benefits at risk.
- The funds are invested by a professional investment manager.