Who Does the Money Belong To?
Decide whether the money belongs to the individual with a disability or someone else.
How to Enroll
in Master Pooled Trust
Learn about the four different types of trusts you can choose from and the steps to get enrolled in Master Pooled Trust.
Steps to Enroll in Master Pooled Trust
Step 1: Determine the source that will fund your family member’s trust.
The money could come from a variety of sources, such as a will, a life insurance policy, SSI back-payments, a court settlement, a gift, or even cash from a savings account.
Whose money is it?
- A third party’s money. If the trust is being funded by someone else’s money, such as mom, dad, grandparents, friends, or other family, choose Trust I or Trust III.
- The Individual with a Disability’s own money. If the trust is being funded by personal savings, gifts, an inheritance left directly to the individual with a disability, SSA back payments, child support or lawsuit settlement, choose Trust II or Trust IV.
Step 2: Determine which of four trust agreements best meets the needs of the beneficiary.
We recommend that you seek the independent advice of an experienced estate-planning attorney or certified financial planner. Here is a list of attorneys throughout the state who work with families of persons with disabilities who need estate planning.
Download a copy of the Trust Document and review it carefully.
Step 3: Complete the Joinder Agreement and Mail it to The Arc of Texas.
Once you have determined which trust is right for you, download the corresponding Joinder Agreement and Trust Document. The Joinder Agreement is the legal document needed to establish a Master Pooled Trust sub-account. Follow the instructions included with the joinder agreement and complete the mailing checklist included in the packet. Then mail the completed joinder agreement to The Arc of Texas with a check for the $600 enrollment fee, payable to The Arc of Texas.
Associated Fees
The following fees may be charged by The Arc of Texas Master Pooled Trust.
Enrollment Fee
A non-refundable one-time enrollment fee of $600* is due at the time the Joinder Agreement is executed. The enrollment fee covers the cost of opening a Trust sub-account for the Beneficiary.
Annual Maintenance and Consultation Fees
There is no annual renewal fee before the sub-account is funded.
After the sub-account is funded, the following annual fees are due. Although annual fees may increase or decrease over time, you will never be required to pay a higher fee than the rate that is applicable at the time your account is funded.
Download Fee Schedule
Special Assessments
The Trustee and the Manager have authority from time to time, as necessary, to assess all sub-accounts or certain sub-accounts with special assessments for specific costs such as the cost of defending a sub-account of the Trust, or taking actions to preserve a beneficiary’s Government Assistance. See Section 7.9 of the Trust Agreement for a description of possible defense costs.
Fee schedule for “Distributions Authorized” accounts (means disbursements will be requested)
Annual Consultation fee:
- 1.75% on the first $50,000
- 1.25% for amounts between $50,000 up to $100,000
- 1% for amounts over $100,000
- Minimum annual fee: $300
Fee Schedule for “Distributions Deferred” accounts (means NO disbursements will be requested)
Annual Maintenance Fee:
- 1.25% for amounts up to $100,000
- 1% for amounts over $100,000
- Minimum annual fee: $250
Annual Accounting Fees for Sub-accounts Requiring Annual Accountings to the Court:
1. $150 for accounts with 24 disbursements or less in a year;
2. $300 for accounts with more than 24 disbursements in a year;
3. Up to $500 for accounts with additional complexities, including supplementary requirements
by the court or items outside of the trust that must be accounted for
Other Fees
- Frequent Disbursement Fee for disbursements that exceed 24 per year: $12.50 per disbursement.
- IRS tax preparation fee: To be negotiated at the lowest reasonable rate
- Closing Fee: A $100 fee will be assessed upon closure of the sub-account
The money belongs to the individual with a disability
• From a lawsuit settlement • From an SSI or SSDI back payment • Child support • An inherence left directly to the individual with a disability or there was no will and the individual will receive money • Savings of the individual • Money being held by a third party that belongs to the individual with a disability.
You can choose between Trust II or IV
All trusts protect benefits
Discretionary: Joinder IV (Recommended)
Discretionary trusts allow for more flexibility. If it is appropriate for the beneficiary's situation, both basic support and supplemental payments may be paid for out of the sub- account. Discretionary trust potentially allow for housing or food to be paid.
Supplemental: Joinder II
Supplemental trusts allow disbursements to be made only for supplemental needs, which include most items that are not food or housing costs. No matter the circumstances, food and shelter will not be paid for out of the sub-account.
The money belongs to someone other than the individual with a disability
• Money from a parent, grandparent, aunt, uncle, other family, friends, or other third parties • Left to trust in a will • Life Insurance left to a trust • Retirement plan left to a trust • Any other cash that is not being held by or belongs to the person with a disability.
You can choose between Trust I or III
All trusts protect benefits
Discretionary: Joinder III (Recommended)
Discretionary trusts allow for more flexibility. If it is appropriate for the beneficiary's situation, both basic support and supplemental payments may be paid for out of the sub-account. Discretionary trust potentially allow for housing or food to be paid.
Supplemental: Joinder I
Supplemental trusts allow disbursements to be made only for supplemental needs, which include most items that are not food or housing costs. No matter the circumstances, food and shelter will not be paid for out of the sub-account.
Discretionary Trusts
Trust IV: Trust IV Document and Joinder Agreement IV
- Funded with Beneficiary’s own money, typically through personal injury settlements, SSI back payments, inheritances, or savings accounts
- If the beneficiary’s situation is appropriate, basic support payments may be approved, in additional to supplemental needs. Thi (Discretionary Trust)
- After the death of the Beneficiary, there is a requirement to reimburse the State for long-term care and medical assistance paid by Medicaid
Trust III: Trust III Document and Joinder Agreement III
- Funded with third-party money through a will, life insurance, or gifts
- If beneficiary is not currently needing to qualify for means-tested benefits, basic support payments may be approved, in additional to supplemental needs. (Discretionary Trust)
- After the death of the Beneficiary, there is no requirement to reimburse the State for long-term care and medical assistance paid by Medicaid
Supplemental Trusts
Trust II: Trust II Document and Joinder Agreement II
- Funded with Beneficiary’s own money, typically through personal injury settlements, SSI back payments, inheritances, or savings accounts
- No payments for food or shelter will ever been needed from the Trust (Supplemental Trust)
- After the death of the Beneficiary, there is a requirement to reimburse the State for long-term care and medical assistance paid by Medicaid
Trust I: Trust I Document and Joinder Agreement I
- Funded with third-party money through a will, life insurance, or gifts
- No payments for food or shelter will ever been needed from the Trust (Supplemental Trust)
- After the death of the Beneficiary, there is no requirement to reimburse the State for long-term care and medical assistance paid by Medicaid
ALL Four Trusts Protect Benefits
Approval from SSA and Medicaid
After Funding
After the account has been funded, the Primary Representative will receive a copy of the toolkit that outlines how to use a trust sub-account with The Arc of Texas Master Pooled Trust. The primary representative will also receive Quarterly statements, showing the disbursements, investment performance, and fees.
Enrollment Guide
If you are not funding the sub-account right away, the Grantor (the person who established the trust) will receive an Enrollment Guide which should answer most of the questions regarding funding the sub-account and other basic information on how the Trust works. This will prepare the Grantor, the Primary Representative, and the Beneficiary to use this sub-account to improve the quality of life and ensure a successful future for the Beneficiary.