Understanding Trusts for People with Disabilities
A special needs trust is a federally approved way for people with disabilities to protect benefits while still maintaining assets over the $2,000 limit required for most government benefits. At The Arc of New Mexico, we believe planning for the future is a critical part of caring for a loved one with a disability. Our Special Needs Trust is a pooled trust established to offer families a dependable, affordable way to provide financial security and an enhanced quality of life for their loved ones, while preserving the benefits that they depend on in their daily lives. Since its inception in 1998, our Trusts have also become an effective means of safeguarding money for individuals whose own resources threaten their ongoing eligibility for public benefits.
Master Trust I
The Arc of New Mexico Pooled Master Trust I, established in 1998, is an irrevocable, self-funded trust. This type of account can be established with earnings, lottery winnings, direct inheritances, Social Security back payments, settlements, or judgement funds awarded to the person with the disability, as well as with monetary gifts. Master Trust I allows the beneficiary to maintain eligibility for government benefits- such as SSI, Medicaid, and Waiver programs. Upon the death of the beneficiary, any remainder funds in the trust will remain with the Arc of New Mexico to benefit other individuals with disabilities.
Master Trust II
The Arc of New Mexico Master Trust II, established in 1999, is a revocable third-party trust. A parent or other third-party can establish a special needs trust with their own funds for the benefit of a loved one with a disability. Only funds from others can be added to this type of account. Master Trust II allows the individual with the disability to maintain eligibility for government benefits. Upon the death of the beneficiary, any remaining funds from the trust can be designated to family, friends, and/or non-profit organizations.