FAQs
How is a Pooled Special Needs Trust different than an Individual Special Needs Trust?
Pooled Special Needs Trusts offer several advantages over individual special needs trusts. Pooled trusts can be set up directly with the non-profit without paying for a private attorney, and can be for beneficiaries of any age, with certain limitations for those over 65. Pooled Special Needs Trusts are ideal for families who have some assets, but not enough to warrant the initial legal fees and then the ongoing annual accounting and legal fees typical of an Individual Special Needs Trust.
What can be funded with a Pooled Special Needs Trust?
Funds can be used to pay for a wide variety of expenses for a person with disabilities. However, if the beneficiary receives SSI, using the special needs trust to pay for rent or mortgage, food and basic utilities, will result in a reduction of SSI.
Some examples of what can be funded are:
Who would benefit the most from a Pooled Special Needs Trust?
Our target clients are families in the Jewish and general communities who have a loved one with a disability who currently receives SSI/Medi-Cal, and the family has assets sufficient to deposit from $20,000-$500,000 into the Trust. Families can start with $20,000 (with the potential of matching $10,000 cash with a $10,000 zero interest loan through Jewish Free Loan of Los Angeles). The family or other relatives/friends can then add additional assets over time, including naming the Trust as a beneficiary of life insurance polices, IRAs and other investments.
I don't fully understand SSI and other government benefits that my son/daughter receives or may be eligible for.
Understanding even the basic of public benefits can be confusing and complicated. It's important though to know the differences between the different programs, what you may be eligible for, and how different types of income can affect eligibility. This video on Public Benefits can help you understand the basics.
What other optional services can JLA Trust provide?
What are the new ABLE accounts and how do they work?
The Stephen Beck, Jr., Achieving a Better Life Experience Act (ABLE) Act was signed into federal law in 2014 and allows eligible individuals with disabilities the ability to establish “ABLE accounts'' that are similar to college savings “529 accounts" with the ability to spend contributions much more broadly than just education.
The new tax-free ABLE accounts will allow more individual choice and control over spending on qualified disability expenses and limited investment decisions, while protecting eligibility for Medicaid (Medi-Cal in California), SSI and other important government benefits for people with disabilities.
Contributions to an ABLE account, currently limited to $14,000 per year, can be made by family, friends, or the beneficiary themselves. This is different than a pooled special needs trust where there is no maximum you can put in. The account’s earnings are allowed to accumulate tax-free, and the withdrawals, provided they are applied to qualifying disability expenses, are tax-free.
Each state has the ability to set up their own ABLE program, and California's version, called CalABLE, is in development and is expected to open the summer of 2017. For more details, go the CA State Treasurer's website on CalABLE at http://treasurer.ca.gov/able/.
You also have the option of opening an account in another state. Currently, ABLE programs are operating in a number of states, including Oregon, Michigan, Ohio, Virginia and Florida. For more information, go to the website of the National Resource Center for the ABLE Act at http://www.ablenrc.org/.
My son/daughter is about to turn 18 and I need help figuring out where to start.
There are many resources in our community which can be helpful as you learn about your options:
Pooled Special Needs Trusts offer several advantages over individual special needs trusts. Pooled trusts can be set up directly with the non-profit without paying for a private attorney, and can be for beneficiaries of any age, with certain limitations for those over 65. Pooled Special Needs Trusts are ideal for families who have some assets, but not enough to warrant the initial legal fees and then the ongoing annual accounting and legal fees typical of an Individual Special Needs Trust.
What can be funded with a Pooled Special Needs Trust?
Funds can be used to pay for a wide variety of expenses for a person with disabilities. However, if the beneficiary receives SSI, using the special needs trust to pay for rent or mortgage, food and basic utilities, will result in a reduction of SSI.
Some examples of what can be funded are:
- Clothing, furniture, and any personal care items
- Bus passes, Uber/Lyft, and gasoline
- In-home help beyond any IHSS hours
- Out-of-pocket medical and dental expenses
- Transportation including purchasing a vehicle
- Legal Services, Conservatorship, and Care Management Services
- Travel/Trips to see family
- Computers, adaptive communication/ technology
- And much more…
Who would benefit the most from a Pooled Special Needs Trust?
Our target clients are families in the Jewish and general communities who have a loved one with a disability who currently receives SSI/Medi-Cal, and the family has assets sufficient to deposit from $20,000-$500,000 into the Trust. Families can start with $20,000 (with the potential of matching $10,000 cash with a $10,000 zero interest loan through Jewish Free Loan of Los Angeles). The family or other relatives/friends can then add additional assets over time, including naming the Trust as a beneficiary of life insurance polices, IRAs and other investments.
I don't fully understand SSI and other government benefits that my son/daughter receives or may be eligible for.
Understanding even the basic of public benefits can be confusing and complicated. It's important though to know the differences between the different programs, what you may be eligible for, and how different types of income can affect eligibility. This video on Public Benefits can help you understand the basics.
What other optional services can JLA Trust provide?
- Care Coordination on a fee-for-service basis, from Jewish Family Service or ETTA. These services can be funded out of the beneficiary’s sub-account. Care Coordination can begin immediately or upon death of parent.
- Siblings can be named the Beneficiary Advocate to work with JLA Trust in making spending requests but not have to file all the annual trust accounting paperwork.
- Introduction to long-term care planning, (both legal and financial).
- Individualized Estate Planning for individuals with disabilities.
- Government Benefits Updates / Tune- Ups.
- Health Insurance Options /Updates.
What are the new ABLE accounts and how do they work?
The Stephen Beck, Jr., Achieving a Better Life Experience Act (ABLE) Act was signed into federal law in 2014 and allows eligible individuals with disabilities the ability to establish “ABLE accounts'' that are similar to college savings “529 accounts" with the ability to spend contributions much more broadly than just education.
The new tax-free ABLE accounts will allow more individual choice and control over spending on qualified disability expenses and limited investment decisions, while protecting eligibility for Medicaid (Medi-Cal in California), SSI and other important government benefits for people with disabilities.
Contributions to an ABLE account, currently limited to $14,000 per year, can be made by family, friends, or the beneficiary themselves. This is different than a pooled special needs trust where there is no maximum you can put in. The account’s earnings are allowed to accumulate tax-free, and the withdrawals, provided they are applied to qualifying disability expenses, are tax-free.
Each state has the ability to set up their own ABLE program, and California's version, called CalABLE, is in development and is expected to open the summer of 2017. For more details, go the CA State Treasurer's website on CalABLE at http://treasurer.ca.gov/able/.
You also have the option of opening an account in another state. Currently, ABLE programs are operating in a number of states, including Oregon, Michigan, Ohio, Virginia and Florida. For more information, go to the website of the National Resource Center for the ABLE Act at http://www.ablenrc.org/.
My son/daughter is about to turn 18 and I need help figuring out where to start.
There are many resources in our community which can be helpful as you learn about your options:
- Bet Tzedek Legal Services can assist with conservatorships and other legal resources.
- The Jewish Free Loan Association's Ruth B. Ziegler Loan Fund for Families of Children with Autism & Special Needs provides interest-free loans of up to $10,000.
- Jewish Family Service and ETTA can offer counseling, referrals and social/recreational opportunities.