As parents of an adult son with disabilities, we are well aware of how uncertain the future may be for our son. His DD Endowment Trust Fund is one thing we can do to reduce that future uncertainty. —MJW, Parent
DDETF offers two types of individual trust accounts to meet the needs of families and individuals. The source of the funds going into the account determines which trust needs to be opened.
An individual may have more than one account with DDETF.
Trust I – Third Party
A Trust I is an account that can only receive contributions from a third party (anyone who is not the beneficiary). Upon the death of the beneficiary, the remaining private contributions and earnings are distributed according to what was established when the account was opened.
In other words, remaining funds will be dispersed as directed in the trust documents.
Unlike Trust II, contributions are not paid to the state as recovery for government services received during the beneficiary’s life.
Trust II – Self-Settled
A Trust II is an account in which only the beneficiary’s funds may be contributed. Upon the death of the beneficiary, the state is entitled to recover dollar-for-dollar for services provided.
If the individual has been receiving services for any length of time, it is highly unlikely that there will be any funds left after the state recovers from the account.
This is a requirement of all special needs trusts funded with the beneficiary’s funds according to Social Security law.
The difference between Trust I and Trust II
- The source of the funds going into the account.
- What happens to the remaining funds in the trust upon the death of the beneficiary.
Other than those two differences, all management, policies, contributions and disbursements are the same for both types of trusts.
Use of funds
DDETF trusts allows families and individuals to save funds—either for the near future or decades from now—to pay for many supplemental services, supports, activities and purchases that improve a beneficiary’s quality of life.
Withdrawals from the accounts are referred to as disbursements. Disbursements from the accounts are as varied as the interests of the individuals enrolled in the program. However, they all have one purpose: to enrich the life of the beneficiary.
Some uses of trust funds may include:
- Education, information and training opportunities
- Assistance with personal care, skill building, financial management, medical monitoring, meal preparation, shopping, home maintenance and house cleaning
- Unusual or extraordinary disability-related shelter expenses
- Capital expenses, including environmental modifications and transportation
- Respite care
- Disability-related support groups
- Transportation costs
- Vacation, travel and recreation
- Employment supports and tuition
- Advocacy and legal services
- Social productivity and personal fulfillment activities, such as volunteering, club membership and recreation
- Assistive technology, including computers and electronic equipment
- Clothing
- Medical care, counseling, therapies and other health related services, including alternative practitioners, not covered by public benefits
- Birthday and holiday presents for the beneficiary to give to others
- Individual trust account expenses including: enrollment, bookkeeping, tax return preparations and filing, tax payments, annual management expenses and other trust related fees
- Pre-paid burial expenses*
- Items the Trust Manager deems appropriate and reasonable within the guidelines of the Governing Board
Please note: Disbursement-related communications should be sent to disbursements@arcwa.org.
* Funds in the trust can only be expended during the beneficiary’s lifetime. Because the trust account ceases to exist upon their death, and funds cannot be disbursed for related expenses after the beneficiary has passed away, we encourage pre-planning related to burial and funeral expenses.
Expenses not allowed under the Trust for SSI Recipients
Shelter costs (including rent, heat, power, water, sewer, garbage) cannot be paid from the trust as they are to be paid from the Beneficiary’s Social Security benefit.