July 22, 2021

The Disability Foundation Announces Third-Party Trust

Local Foundation Provides New Option for People Living with Disabilities to Establish a Trust

The Disability Foundation is pleased to announce the offering of a new third-party trust. A special needs pooled trust can now be established through a gift from a friend or family member with this new option. Previously, trusts could only be created with money belonging to the individual.

“With this new trust, we’re able to improve the quality of life for more people with disabilities,“ said Greg Darling, Executive Director. “Now anyone can allocate funds to make a difference for someone with special needs without impacting their public benefits or compromising their financial future.”

With a third-party trust, anyone, including parents, other relatives or friends of the beneficiary, can use funds to create a trust. Money to establish the third-party trust can come from gifts directly to the trust, an inheritance a grantor wishes to leave to the beneficiary or life insurance policy proceeds. Since the money never belongs to the beneficiary, there is no Medicaid payback upon death and the remaining funds can be left to a named recipient.

In addition to the new third-party trust, The Disability Foundation offers a first-party trust option that a grandparent, parent, guardian, court, or individual living with a disability creates with money belonging to the person with a disability. This type of trust is useful when someone receives an inheritance, gift, personal injury settlement, back payments from Social Security or accrued SSI payments. With first-party trusts, there is a Medicaid payback requirement. Money remaining in the trust when the beneficiary passes is used to satisfy the Medicaid liability.

About The Dayton Foundation

The Disability Foundation, an organization under the auspices of The Dayton Foundation, was founded in 1998 and provides pooled special needs trusts option to people living with disabilities all across Ohio. With almost 900 participants and over $31 million under active management, the foundation can improve the quality of life for hundreds of people with disabilities in ways that are otherwise not possible for individuals relying on public benefits.

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File date: 08.20.21

HERE TO HELP

Greg Darling

“Have a question about The Disability Foundation? I can help.”
Greg Darling, executive director of The Disability Foundation, (937) 225-9939

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