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Trust Basics

Meet the Team          Our Trustee          Trust Basics          Setting Up a Trust          Using the Money in Your Trust          Documents & Forms          Appointments & Payments

Special Needs Trust Basics

What if?

That’s the question parents ask themselves about the future of their child with a disability.
Many things are out of your control. But money for the future doesn’t have to be one of them.

 

What if… you could make sure your child has a way to be happier and more secure?

 

What if… you could make sure government benefits aren’t threatened by unexpected money?

 

What if… you could make sure your child’s money is managed by experts in finance and disability policy?

 

What if… you could put this into place now?

 

You can.

 

photograph of a mother and her disabled son in the kitchen. Mom is wearing a red and black checkered flannel shirt, and pours a cup of coffee, Her son is in a wheel chair, wears a teal sweatshirt, and is looking up at his mom

What is a Special Needs Trust?           Who’s who in a Trust?           How can I use a Trust?           Types of Special Needs Trusts                    Testimonials

an older mother and her adult son stand side-by-side

What is a Special Needs Trust?

A special needs trust is a reliable way to set aside money for the future of someone with a disability.

It’s like other trusts in many ways. Money may be put in a trust for a beneficiary, someone who needs help managing money. Part of setting up a trust is choosing a trustee. That’s the person who controls and manages the money for the beneficiary. Key Bank is the trustee if you set up the trust with The Arc of Northern Virginia.

Trusts may also have a trust manager to help with day-to-day tasks on behalf of the beneficiary. In The Arc of Northern Virginia’s trust program, The Arc is the trust manager. We help with day-to-day tasks on behalf of the beneficiary.

Government benefits depends on a person’s assets and resources AND diagnosis and functionality. Money in a special needs trust is not controlled directly by the person with a disability. As a result, money in a special needs trust doesn’t affect government benefits as long as it is being spent appropriately.

However, government agencies limit how money from a trust can be used. Many special needs trusts are set up with rules about what the money can be used for. And only a certain amount of money can be drawn from the trust at a time.

If a special needs trust is managed well, it’s a great way to save for the future and protect government benefits.

Our staff is ready to help you understand, plan and create the special needs trust that’s right for you.

A black father and his young son sit on the back of a park bench in front of trees with the leaves falling.

Who’s Who in a Trust?

The person who the trust is set up to help. With a special needs trust, it is someone with a disability.
The person or entity who works with the beneficiary, family and friends. Staff of The Arc of Northern Virginia manage the trusts. We also work with professionals such as lawyers, financial planners, and doctors.
The person or entity in control of the beneficiary's money. KeyBank is the trustee for our trust program.
The person or people who create the trust. It can be family members or friends. In some cases, it might be the person with a disability.
The person or people chosen to work with the beneficiary to help use the trust money. The primary representative fills out and submits spending requests.
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How can I use a Special Needs Trust?

A special needs trust can be used to buy things that make the beneficiary’s life better.

It can be used for clothing and luggage. It can be used for vacations and vehicles. It’s for education, medical needs, entertainment, subscriptions, sports, health clubs and much more.

But certain government rules may restrict what special needs trust money can be used for. For example, if the beneficiary receives SSI, using the trust to pay for food and shelter (rent & utilities) may reduce the beneficiary’s SSI benefits. The money in a special needs trust is meant to supplement benefits and add enjoyment to the beneficiary’s life.

The Arc of Northern Virginia works with families and individuals to comply with government rules. Our staff also minds the budget and other circumstances of each client.

We work as a team to make sure each beneficiary gets the right amount of help from trust funds while safeguarding benefits.

Learn more about how the payment request process works on our “Using the money in your Special Needs Trust” page.

a young black man in a white t shirt steadies an older black man wearing a blue shirt and holding a cane

Choose the Right Special Needs Trust for You and Your Family

The Arc of Northern Virginia offers two kinds of special-needs trusts. Family-funded trusts and self-funded trusts both work in the same ways. The one that’s right for you depends on your circumstances.

 

A family-funded trust is set up with money from a family to help a person with a disability. Parents, grandparents, brothers and sisters or anyone else in a family can add money to the trust. Many families set up a trust early on and add to it regularly. They may invite family members and friends to contribute money as gifts. Other families set up the trust to be funded when one or both parents die. Once the family-funded trust is set up, all family members should be told about it. Friends and family may want to give money through wills or life insurance. It’s important to steer that money to the trust.
A self-funded trust is set up with money from a person with disabilites to help themselves. Self-funded trusts are often set up when an unexpected sum of money is given to a person with a disability. The money could come from a poorly planned inheritance, a court settlement or alimony. The money could come from other places, too, such as Social Security benefits, adult child support or work income.
The federal government allows military members and retirees to steer survivor benefit plans (SBP) to their children with disabilities. Survivor benefits are paid to family members of someone in the U.S. military after they die. The spouse-child option may also be used when the child has a long-term disability. This includes adult children, of course. A self-funded trust is needed to ensure the money doesn't put other government benefits at risk. The SBP would need to be irrevocably assigned to a self-funded trust. There are several steps to setting this up. Our trust team will get you started. We also provide the letter template to DFAS and an attorney certification of the trust.
Usually, one or the other is all that is needed. But in some cases, both kinds may be needed to help the same person. If someone with a self-funded trust will also get money from their family, both kinds of trusts need to be set up. Family money should not be added to a self-funded trust. The reverse is also true. Please get in touch with our trust team to find out which trust is best for you. Getting a big sum of money at once or having a high income can affect the level of government benefits. Putting the money into a special-needs trust helps preserve government benefits.
a young adult male with down syndrome and his female supervisor, both wearing brown aprons, are standing and smiling behind the counter of a coffee shop.

Your Support Makes Our Work Possible

As a 501(c)(3) nonprofit organization, The Arc of Northern Virginia relies on private support from individuals, corporations, organizations, and foundations to fund our efforts. Your generous donations help make it possible for us to provide programs, services, and advocacy so that people with IDD can live “A Life Like Yours.”

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