THIRD PARTY TRUSTS:
Third Party Trusts are those Supplemental Needs Trusts (“SNT’s”) which are created by friends or families of the individual with disabilities and FUNDED with assets from any source but the individual with disabilities. The goal of the SNT is to provide for the wellbeing of the individual with disabilities while preserving their eligibility for essential, lifelong supports such as Medical Assistance, Waiver Programs and Supplemental Security Income (“SSI”)
A Testamentary Trust is a Trust created within an individual’s Last Will and Testament and becomes effective upon the death of the individual.
- A Testamentary Special Needs Trust created under a Will must contain specific language to qualify it as a SNT for the benefit of an individual with disabilities.
- The individual chooses the Trustee and a Successor Trustee.
- The Testamentary Trust is a “stand alone” Trust meaning it is not pooled for Investment purposes (unless the document allows for pooling of assets, see below).
- The Trust language gives instruction to the Trustee as to final distribution of any funds remaining in the Trust when the beneficiary passes.
First Maryland Disability Trust is able to serve as Trustee of a Testamentary Trust.
THIRD PARTY POOLED ASSET TRUST:
- The Third Party Pooled Trust may be created by families or friends (anyone other than the person with disabilities) for the benefit of person with disabilities.
- The Third Party Pooled Trust may be established and funded now or established and funded later.
- The Third Party Pooled Trust account is established by using FMDT’s Third Party Pooled Trust Agreement and Joinder Agreement.
- Alternatively, the Third Party Pool may be designated as the Trust to be used pursuant to a Last Will & Testament and established then.
- FMDT has no minimum deposit.
- The individual establishing the Trust designates where funds remaining in the account are to be distributed when the individual with disabilities passes away.
- The Pooled Trust allows for assets to be “pooled” or combined with others for investment purposes only and individual accounts are maintained for each individual beneficiary.
- First Maryland Disability Trust’s Third Party Pooled Trust is operated by the non-profit organization, First Maryland Disability Trust, Inc.
First Maryland Disability Trust is the Trustee for the Third Party Pooled Trust.
Third Party Pooled Documents:
- Third Party Pooled SNT Declaration of Trust
- Joinder Agreement with Exhibits
- Fee Schedule – 3rd Party Accounts
- EXHIBIT B – Grantor & Beneficiary Info.
- EXHIBIT C – Designation of remainderman