Glossary
A
Administrative Fees – Administrative fees are established by the Board of Trustees and support MSNT operations as Trustee. MSNT’s banking contractor maintains individual accounting for each Beneficiary, invests funds, provides quarterly account statements and tax related documents. MSNT Trust Administration Fees and Bank Investment Management Fees are based on the account balance and are calculated and pro-rated as a monthly amount. To see our fee schedule, visit https://www.midwestspecialneedstrust.org/fees/
B
Beneficiary – The individual with a disability for whom the trust sub-account is funded.
C
Conservator – A person appointed by the court that oversees and manages the beneficiary’s personal assets. Assets in the trust sub-account are not considered assets in the conservatorship.
Co-Trustee – The person designated in the trust agreement documents responsible for working with MSNT. This person is responsible for making requests for funds and receiving all trust sub-account related correspondence.
D
Deposit – Cash assets placed into the trust sub-account. Deposits can be made at any time. There is no upper limit on the amount that can be in the trust sub-account.
Disbursement – Payment of funds from a trust sub-account. Disbursements must be requested using a Request for Funds Form. To learn more about disbursements, visit https://www.midwestspecialneedstrust.org/distributions/
Donor – The person(s) who deposit assets to the trust sub-account.
E
Entitlements – Health insurance and monthly cash benefit that an individual earned from their employment or someone else’s employment. Entitlements include Social Security Disability Insurance (SSDI) and Medicare.
Exempt Asset – Any resource of the Beneficiary that is not counted as an available resource by the Social Security Administration or state Medicaid program. First and Third Party Trusts and their sub-accounts are considered exempt assets.
F
Fiduciary Duty – MSNT requirements to administer the trust and trust sub-account. Fiduciary Duties include acting in the best interest of the Beneficiary, making prudent investment decisions, keeping records, and providing statements
First Party Trust – Trust that holds all first party sub-accounts. All sub-accounts in the First Party Trust are irrevocable, funded with the assets of the individual with a disability, and require Medicaid payback at closing.
G
Government Benefit – Health insurance, housing, monthly cash benefit, and subsidies which are provided by the government. These can include both public benefits and entitlements.
Governor Appointed Board – MSNT is governed by a nine-member Board of Trustees. Board members are appointed by the Missouri Governor with advice and consent of the Senate. Six Board members are individuals who have a family member with disability. Three Board members are individuals with expertise in business. Board members serve without compensation and are appointed to a 3 year term. To learn more about the Board of Trustees, visit https://www.midwestspecialneedstrust.org/about/governing-board/
Grantor – Tax classification for Third Party Revocable and First Party Trusts, and their trust sub-accounts are Grantor Trusts.
Grantor Statement – Tax document received yearly for First Party and Third Party Revocable sub-accounts. The Grantor Statement should be filed with the personal taxes of the donor.
Guardian – A person appointed by the court that oversees the Beneficiary’s decisions.
H
Home Purchases – MSNT does not authorize distributions for a home purchase with trust sub-account funds. MSNT does not accept homes into trust.
I
Inactive Trust – MSNT has an Inactive Trust option for family, friends, or the individual with a disability to set up a trust sub-account for future deposit. Inactive Trusts can be revocable or irrevocable. To learn more about our Inactive Trust, visit https://www.midwestspecialneedstrust.org/third-party-inactive-trust/
Investments – MSNT, as Trustee, has full authority over investments. To learn more about our investment options, visit https://www.midwestspecialneedstrust.org/resources/investment-options/
Irrevocable – A trust or trust sub-account that cannot be changed or terminated.
J
Joinder Agreement – Part of the trust agreement documents. This form is required to be completed to open a sub-account.
K
Knowledgeable Staff – MSNT staff participate in trainings, seminars, and conferences to keep up to date on special needs trust administration, learning about individuals with disabilities, and professional development. To learn more about our staff, visit https://www.midwestspecialneedstrust.org/about/staff/
L
Law, Federal Statute – Special Needs Trusts and Pooled Trusts are authorized by federal statute. (42 U.S.C Section 1396(d)(4)(c). To read the statute, visit https://www.law.cornell.edu/uscode/text/42/1396p
Law, State Statute – MSNT is unique! We were established by Missouri State Statue (RSMo 402.199-402.208) in 1989. To read our statute, visit https://revisor.mo.gov/main/OneSection.aspx?section=402.199
M
Master Trust – The governing document that provides the terms and conditions for administration. MSNT has two Master Trusts, one for First Party and one for Third Party trusts. MSNT has the authority to amend the Master Trust to remain compliant with applicable federal and state policies.
Medicaid Payback – The remainder balance in a First Party Trust sub-account is subject to claim by state Medicaid program(s). Medicaid can place a lien on the remainder balance in the sub-account for the medical expenses paid for the Beneficiary during their lifetime. The First Party Trust must have a Medicaid payback provision.
Midwest Special Needs Trust – also known as Missouri Family Trust dba Midwest Special Needs Trust. Midwest Special Needs Trust serves as Trustee. To learn more about MSNT, visit https://www.midwestspecialneedstrust.org/
N
Non-Grantor – Tax classification for Third Party Irrevocable Trust and its sub-accounts are Non-Grantor trusts.
O
OBRA ’93-Omnibus Budget Reconciliation Act of 1993 – Budget bill providing the “establishing rules for the treatment of funds and other assets of an individual placed in trust or on behalf of an individual (or the individual’s spouse) for purposes of Medicaid eligibility”.
P
POMS – Program Operations Manual System. The POMS is a primary source of information used by Social Security employees to process claims for Social Security benefits. To read more about special need trusts in the POMS, visit https://secure.ssa.gov/apps10/poms.nsf/lnx/0501120203#a
Pooled Trust – As authorized under 42 U.S.C Section 1396(d)(4)(c), MSNT is a pooled trust organization. The funds in the trust are pooled for investment and management purposes, but accounting is kept separate for each Beneficiary.
Public Benefits – Health insurance and monthly cash benefit that an individual may be eligible for based on their disability and available resources/income. Public Benefits include Supplemental Security Income (SSI), Medicaid, Food Stamps and HUD.
Q
Quarterly Trust Sub-Account Statement – A record of a sub-account activity for the prior quarter. Sub-Account statements are mailed to the Co-Trustee, Beneficiary or responsible party. Sub-Account statements are also available online. To learn how to read the sub-account statement, visit https://www.midwestspecialneedstrust.org/documents-forms/
R
Remainder Beneficiary – The person(s) or entity named by the Donor in the trust agreement document to receive remainder funds when the sub-account is closed due to death.
Revocable – The Donor or authorized Co-Trustee may retain the right to close the trust sub-account due to request.
S
Schedule K-1 – Tax document received yearly for Third Party Irrevocable sub-accounts. The Schedule K-1 should be filed with the personal taxes of the Beneficiary.
Sole Trustee – If no Co-Trustee is named in the trust agreement documents, MSNT will serve as Sole Trustee. The same applies if all Co-Trustees and Successor Co-Trustees are unwilling, unable or unavailable to serve.
Sub-Account – A Beneficiary’s portion of the pool is called a sub-account. Each type of trust, First Party, Third Party Irrevocable and Third Party Revocable, has its own pool for investment and management purposes. Funds deposited for the Beneficiary are pooled together with similar trust and portfolio types for investment and tax optimization purposes. All earnings are individually accounted for.
T
Taxes – MSNT files taxes for the trust sub-account. MSNT does not file taxes for the Beneficiary’s personal taxes. Donors, Co-Trustees, Beneficiaries and responsible parties will receive a tax document every March. The tax document should be filed with the Beneficiary’s personal taxes.
Third Party Trust – Trust that holds all third party irrevocable or third party revocable sub-accounts. All sub-accounts third party trusts funded with the assets belonging to someone other than the individual with a disability and does not require Medicaid payback at closing.
Trustee – Midwest Special Needs Trust serves as Trustee. The Trustee has full discretion regarding the administration of the trust and trust sub-account.
U
Unique Asset – An asset held by the Trustee, but not within the sub-account. For example, an inherited IRA is considered a unique asset.
V
Vehicle Purchase – MSNT can authorize the distribution for the purchase of a vehicle. A driver’s license and medical release to drive is required. MSNT will be the first lien holder on the vehicle.
W
Work Incentives Practitioners – MSNT has several Certified Work Incentives Practitioners on staff to help answer questions related to government benefits and working. To learn more about the certification, visit https://www.ytionline.org/
X
Xerox – Feel free to make copies of the Request for Funds Form. For the most up to date form, visit https://www.midwestspecialneedstrust.org/documents-forms/
Y
Young Adults – When a person with a disability is no longer a minor, many decisions and plans need to be made. In addition to applying for government benefits, plans for education and housing should also be considered. Trust sub-account funds can be used for education expenses and household items for a first apartment.