CLC SUPPLEMENTAL NEEDS POOLED TRUST

Q: Can you tell me about CLC's Supplemental Needs Pooled Trust?

A: The CLC Supplemental Needs Pooled Trust is a financial instrument that permits monies to be set aside for a beneficiary who is permanently disabled. Participation in the Trust does not jeopardize the client's entitlements for Medicaid or other government benefits. Either the client (using his or her own money) or a parent, relative or friend can set up the Trust.

Under current Social Security rules, if a client has more than $2,000 in a personal bank account, for example, that client could risk losing government benefits. A CLC Trust, therefore, allows for the clients, or the client's family, to set aside funds that are designed to provide either a savings program for the client, or a means of paying for items or services that the agency or client cannot pay for.  Since the Trust is designed to preserve goverment benefits, such as SSI and Medicaid, it is important to know that any cash provided to a beneficiary will be counted as income and may reduce those benefits.  Therefore, payments should be made directly to a vendor or provider of services.

Click on the SSI and Medicaid page to learn more about these programs.

Q: Who is the trustee for the CLC Trusts?

A: The CLC Trust is an entity sponsored and operated by CLC through its board of directors. The designated Administrative Trustee is John Signorelli, the Executive Director of the CLC Foundation.  Our Co-Trustee is The Santa Fe Trust Company.

Q: How does one set up a CLC Trust, and is there a minimum amount required?

A: Anyone who is permanently disabled can either set up his or her own Trust with a minimum opening balance of $10,000. A relative or friend can set up a Trust for the beneficiary with a minimum deposit of $10,000. The actual Trust documents are available in the Forms section of this web site. Alternately, you can go to the Contacts page and call or e-mail our office.

Q: Where are the funds deposited?

A: Any funds put into the Trust are kept on deposit at a large financial institution. A copy of the monthly statement is kept on record at our office.  Duplicate statements can be requested and sent to the sponsor of the trust, the beneficiary, or anyone designated to be an advocate for the beneficiary.  Monthly statements are mailed approximately 2 weeks after the end of each month.

Checks being deposited into the Trust should be made payable to the Trust for the benefit of (FBO) the beneficiary.

  Example:  CLC PT1 FBO John Smith
                    CLC PT2 FBO John Smith

Checks should be sent to our office:

                CLC Foundation
                600 Bedford Road
                Mount Kisco, NY 10549
                Attn: John Signorelli
                     
Q: How can money be withdrawn from the Trust?

A: Any designated person identified by the trust sponsorship agreement or the beneficiary himself can request that payments be made from the Trust. This is done by putting the request in writing or sending a bill for a payment to be made to a third party.  Since cash will count as income to the beneficiary and jeopardize government benefits, such as SSI & Medicaid, cash withdrawals should be avoided.  All requests should be sent in writing to the Administrative Trustee, John Signorelli.  Requests can be mailed, faxed, or e-mailed.  

email: Request@clcfoundation.org

fax: (914) 242-3516

Mail:  CLC Foundation
         attn: Trust Request
         600 Bedford Road
         Mount Kisco, N.Y. 10549
        

Beneficiaries can request a duplicate invoice be sent to the Trustee.  If this choice is selected, please instruct the vendor to use the beneficiarie's name and the Foundation address as listed below. 

  Example:  John Smith (name of beneficiary)
                  c/o CLC Foundation, Inc.
                  600 Bedford Road
                  Mount Kisco, NY 10549

It takes SEVEN to TEN days to process payments.  Requests for payments should be made in advance so that payments for bills can be made in a timely manner.


Q: Are there fees associated with participating in the Trust?

A: There is an annual management fee, a co-trustee fee and a one time set up fee.  The annual management fee is utilized to offset the administrative expenses of administering the trust as well as handling the requests for payments from the trust.  Please refer to our Sponsorship Agreement and Trust Corpus. 

Other fees may be incurred if the individual requests that the funds be managed professionally by an investment manager.  There are several available through our professional relationship with TD Ameritrade.  Whether or not this approach should be taken should be determined through consultation with the Administrative Trustee, John Signorelli.


Q: What is the difference between CLC's Pooled Trust One (PT1) and Pooled Trust Two (PT2)?

A: PT1 is set up by a relative, guardian, or friend of the client and requires a $10,000 minimum opening balance. PT2 is set up by the client with his or her own money (minimum of $10,000). Another significant difference is that upon the death of the client in the case of PT1, the remaining funds can be gifted to whomever the sponsor designates. In the case of PT2, the client may leave the remaining funds to the State or designate that they remain in the Trust for the benefit of other persons with disabilities. Please see the Medicaid page for further information regarding money that is left in the trust of a Pooled Trust 2 participant.

Q: What are the best uses for the Trust?

A: The Trust becomes a vehicle through which the beneficiary can use trust funds for burial or any other service they wish to fund. The funds can also be used for extra clothing, vacations, furniture, etc. Even more importantly, these funds can pay for medical services not provided by Medicaid, or any other third party insurance provider that insures the client.

One of the main benefits of a Supplemental Needs Trust is to enhance the quality of life for the beneficiary by providing for the purchase of additional support, services, therapies and other items that are not covered by nor provided adequately for by available government programs.  The Trust provides a financial vehicle to meet both the anticipated and unforeseen future needs of persons with disabilities.

Expenditures should be tailored to the person for whose benefit the trust was created.  The Trustee will consider the wants and needs of the beneficiary and his social worker, residential or vocational staff and/or family.


Since there are few ways to safely leave money to their disabled child, many parents are beginning to plan for the future by setting up a supplemental needs trust. This offers the peace of mind that their loved one will always have access to money for items that government benefits do not provide.

Q: What are some of the specific items that can be purchased with monies from a CLC Trust?
A: Trust funds can be used for various expenses not covered by other government benefits
such as :

• Out-of-pocket medical and dental expenses

• Eyeglasses
• Videos/games

• Annual independent medical check-ups

• Transportation (including vehicle purchase)

• Maintenance of vehicles

• Insurance (including payment of premiums)

• Rehabilitation

• Essential dietary needs

• Materials for a hobby or recreational activity

• A computer or electronic equipment

• Trips or vacations, entertainment. i.e. movie tickets,
  a ballgame, concert, etc.

• Goods and services that add pleasure and quality to
  life: furniture, or a television

• Athletic equipment, training or competitions

• Personal care attendant or escort

• Pre-paid funeral/burial plan expenses

Q: What are examples of expenditures that would not be approved for Trust fund withdrawals?

A: In the case of PT1, the parent or sponsor can decide what the money can be spent on and empower CLC to guarantee that their wishes are carried out. Expenses that would not be approved are those expenditures that would endanger the government benefits received by the beneficiary, that the trust is designed to protect.  Since cash is counted as income, it should be avoided at all times.  Since SSI and Medicaid programs are means-tested, a person is eligible for benefits only if his income and resources are below certain levels.  Any income or resource received which causes the person to exceed these levels will result in the partial or full loss of the government benefit.  Since SSI payments are intended to pay for food and shelter, the Trust should not be used to pay for these items.  These items will constitute "in-kind" income and would most likely result in a 1/3 reduction of the SSI benefit.  However, the Trustee can use the trust funds for food and shelter if the Trustee determines that doing so is in the best interest of the beneficiary, despite a possible loss or reduction in SSI.

Because the trust must be used for the sole benefit of the trust beneficiary, payments to others will not be approved.  Distributions for non-cash gifts with a value no greater than $75.00 may be approved. Donations cannot be made from the trust.

Q: Can funeral expenses be paid from the trust?
A:  Pre-paid funeral expenses can be paid from the trust.  However, once a person dies, money from the trust cannot be used to pay for funeral expenses.  All beneficiaries should consider a pre-paid funeral plan, unless they have family members that will take care of this for them.

Q: Can a family member be reimbursed for a purchase made on my behalf?
A: Upon submission of a written request and appropriate receipts, another individual may be reimbursed for expenses paid on behalf of the beneficiary.  Each request is reviewed individually; therefore contact the Trustee prior to making the expenditures to assure the item(s) are eligible for reimbursement.