Trust FAQs

The questions below are frequently asked during the LA+ intake process. If you do not see your question, please call our office at (206) 367-8055 or email our Intake Team at danika@laplus.org.

What does “pooled” mean in a Master Pooled Special Needs Trust?

Pooled funds are available to beneficiaries who have outlived the funds in their trust as long as they remain disabled. These funds are bequeathed by other beneficiaries who have a Master Pooled Asset Trust Fund with LA+ and who have passed away with funds in their trust.

All Lifetime Advocacy Plus Pooled Trust subscribers who have depleted their individual trust accounts may make requests for use of these pooled funds. To date over $1,000,00,000 has been disbursed from this Pooled Account to our scribers. For more information, please view the About the Master Pooled Asset Special Needs Trust page.

What is the difference between a first party Trust and a third-party Trust?

A first party Trust is a Trust that is funded by a beneficiary. A third-party Trust is a Trust that is funded with another party’s funds.

What is a Medicaid lien and what types of trusts have one?

All first party Trusts have a Medicaid Lien, including the (d4c) LA+ Master Pooled Asset Special Needs Trusts, (d4a) Stand-Alone Special Needs Trusts that have been funded by the beneficiary.

A Medicaid Lien is a lien that DSHS puts on your property, in this case, a Trust, for payment of Medicaid assistance previously paid on your behalf.

Third-party Trusts do not have a Medicaid Lien, since they were funded with money that did not belong to the beneficiary. This would be the case regarding our (d4c) LA+ Master Pooled Asset Special Needs Trust II, and our (d4a) Stand-Alone Special Needs Trust that are funded with other party money, including Testamentary Trusts.

A.B.L.E. (A Better Life Experience) accounts have a Medicaid lien.

Can a trust make a distribution to an A.B.L.E. (A Better Life Experience) account?

Yes, a Trust can distribute funds to the beneficiary’s A.B.L.E. account upon the beneficiary’s request and meeting qualifications. To learn more about A.B.L.E. accounts, visit https://www.washingtonstateable.com/how-it-works.

Are you able to bond funds if required by the Court?

Due to our non-profit status, we block funds in lieu of bonding.

What if the beneficiary is unable to execute the trust establishing documents?

If the beneficiary is under Guardianship and/or Conservatorship at the time of Trust establishment, then the Guardian may execute the documents on the beneficiary’s behalf. We would require a copy of current Guardianship letters.

If the beneficiary is not under Guardianship, then a Court must enter an Order granting another individual with the authority to execute the documents to establish the Trust. We would require a copy of the Court Order.

What is a Letter of Intent?

A Letter of Intent is a letter that accompanies a Trust or Guardianship and has been written by the Trustor, parent or close family member sharing additional information that can be used by the Trustee/Guardian representative. These letters can be updated whenever deemed necessary at no by LA+ charge.

Do you invest funds? If so, how?

Yes, LA+ has an investment committee that is comprised of expert volunteers that includes private wealth managers with decades of experience.

Each client’s Trust investment strategy review occurs yearly and is tailored to their circumstances, such as their age, size of the Trust, and their yearly personal and incidental needs. Funds are invested with a total return goal. This is a long-term investment strategy focused on maximizing the overall return of an investment portfolio, including capital appreciation and income generated from investments.

If trust funds have already been invested, do you maintain outside investments?

Yes.

What type of trust is available to me if I am over the age of 65? Are there any other additional considerations in this scenario?

In such cases where the person is over 65, we always require they or their agent seek advice from an elder law/estate planning attorney prior to Trust establishment to make sure that funding a Special Needs Trust is a prudent decision.

Persons over the age of 65 are only eligible for a pooled Special Needs Trust, such as the LA+ Master Pooled Asset Special Needs Trust which you can find here.

If a Trust is funded when someone is over 65, there exists a potential period of ineligibility for Medicaid Long Term Care benefits. The period of ineligibility begins the following month the funds are placed into the Trust. The Trust would be used to cover the beneficiary’s room and board/cost of care during their period of ineligibility.

If the beneficiary is providing the Trust with additional funds, the period of ineligibility may be extended.

What happens when a beneficiary dies with funds remaining in their trust?

When a beneficiary of a pooled Trust dies, our agency first reaches out to the DSHS Office of Financial Recovery and obtain their Medicaid lien. After we have the lien in hand, we follow the beneficiary’s selection/direction on their Agreement to Establish an Individual Account.

If the deceased beneficiary chooses for LA+ to retain the funds to use for the benefit of other beneficiaries of the Master Trust who have depleted their individual accounts and to support the administration of this Trust, the Medicaid lien does not have to be paid.

If the deceased beneficiary chooses to bequeath remaining funds to a remainder beneficiary, the Medicaid lien must be satisfied in full.

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