! Using a Trust – Midwest Special Needs Trust

Using a Trust

Once a trust has been established, the Co-Trustee can submit request for funds for the Life Beneficiary’s supplemental needs. A signed Request for Funds Form and supporting documentation is required. MSNT staff will review the request for funds to ensure compliance with applicable federal and state policies. Review, approval and mailing can take 5 to 7 business days to complete.

Guidelines for trust distributions

The following chart provides general guidelines and expense categories for trust use. It is not a comprehensive list or guarantee of payment.

Allowable
With documentation and co-trustee approval, preferably payable to vendor
Not Allowable
  • Medical, dental and equipment not covered by benefits
  • Supplemental or support services not covered by benefits
  • Rehabilitation training and therapy not covered by benefits
  • Education including tuition, books and supplies
  • Irrevocable Prepaid Burial policies
  • Clothing
  • Non-food grocery items, such as personal care, cleaning and hobby supplies
  • Transportation expenses
  • Personal property including household goods and furnishings
  • Travel expenses
  • Home modifications for accessibility or equipment for home care
  • Phone, cable and internet services
  • Entertainment items and events
  • Cash or payment to the Life Beneficiary
  • Room and board or base rate for a residential facility
  • Rent or mortgage payments
  • Basic utilities (electric, gas, water, sewer, trash)
  • Groceries, food items, or dining out
  • Alcohol
  • Gambling
  • Weapons, firearms or explosives
  • Charitable donations or gifts to others
  • Anything covered by another funding source (Medicaid, Medicare, private insurance, etc.)
  • Any payment after the death of the Life Beneficiary
Due to IRS regulations, MSNT does not have the infrastructure to comply with federal requirements to perform employer duties.

Rate of Trust Use

MSNT authorizes disbursements in the best interest of the Life Beneficiary. Disbursements approved by MSNT will not have a negative impact on public benefits. As Trustee, MSNT must preserve the assets of the trust for as long as practicable. MSNT encourages conservative use of the trust with an expenditure rate of 2-4% per year.

Minimum Trust Account Balance

MSNT requires a minimum balance of $1,000 in each trust. Once the trust balance falls below $1,000, the Donor, Co-Trustee, or Life Beneficiary is notified and additional funds may be deposited. If additional funds are not available, MSNT initiates termination.

Sole Trustee

When all designated co-trustees and successors are no longer willing or able to serve or when no co-trustees are named as part of the trust declaration, MSNT serves as sole trustee and will MSNT will serve as Sole Trustee for trusts without a designated Co-Trustee or when the Co-Trustee resigns because they are no longer able or willing to serve. As Sole Trustee, MSNT will communicate directly with the Life Beneficiary, service provider or their legal representative to identify needs, document expenses and complete the Request for Funds form. A Sole Trustee fee will be applied.