An account with the Developmental Disabilities Endowment Trust Fund is an economical and trusted alternative to a stand-alone special needs trust. It is designed to be used whenever money (such as an inheritance or personal injury award) is distributed to someone who:
- Is or will be on needs-based government assistance (such as SSI and Medicaid); and
- Qualifies as being developmentally disabled.
Once a trust is established, the funds in the trust account are exempted from resource limits. It help the client to stay under the resource limit required to stay on SSI and Medicaid.
Assisting clients
You can assist with filling out the Joinder Agreement and Schedules to get your client enrolled. The templates and enrollment forms are available on our Forms page. They can be filled out electronically or by hand, depending upon preference. After, the paperwork needs to be signed, notarized and sent to the trust office to complete the enrollment.
You can also refer your clients to DDETF’s office. Our staff will assist the client and/or family to enroll.
Forms
Estate plans
Estate plans can be drafted to direct bequests to an DDETF trust account rather than a third-party testamentary trust. Such accounts, called Trust I accounts, are not Medicaid payback accounts.
Developmentally disabled individuals who find themselves directly receiving an inheritance can route those funds to a DDETF Trust II account, which does have a Medicaid payback (required by federal law).
Settlements
Personal injury awards and structured settlements can similarly be routed to a DDETF Trust II account in order to preserve the client’s eligibility for SSI and Medicaid.
How the trusts are governed
The DDETF is an irrevocable (d)(4)(C) special needs trust governed by 42 USC § 1396(p)(d)(4)(C). These supplemental special needs trusts are exceptions to the general premise that all trusts are countable assets with regard to means-tested governmental programs.
The D4C trust, also known as a “pooled trust” or a “master trust,” has the following conditions apply:
- The trust is established and managed by a nonprofit organization.
- A separate account is maintained for each beneficiary of the trust, but for purposes of investment and management of funds the trust pools these accounts.
- Accounts in the trust are established by the parent, grandparent, legal guardian or a court for individuals who are disabled (as defined in Title 42 U.S.C. Sec. 1382c(a)(3)) and solely for the benefit of such individuals.
Additional information
The Social Security Administration reviewed the DDETF in 2019. It was approved and compliant with POMS SI 01120.203 Exceptions to Counting Trusts Established on or after January 1, 2000. See PS 01825.053 Washington B. PS 19-064 Analysis Of The Washington State Developmental Disabilities Endowment Trust Fund II.
The DDETF program’s enabling statutes are RCW 43.330.430 – .437 and its rules are WAC 365-220.
Over 3,600 accounts have been opened since 2002.
Learn more
With the state matching of the $600 origination fee, as well as matching of portions of other fees, DDETF is a financial gift to Washington residents with developmental disabilities.
For more information, call the DDETF office to learn how this trust program can be useful to your clients.
Your clients will be delighted and grateful to learn about it from you.
