Supplemental Needs Trusts

Community Trust I is a Third Party Trust. Parents, grandparents and/or any interested person might consider this trust the perfect way to ensure the supplemental needs of a person with a developmental disability are secured. This trust is most often funded through a Will as part of an estate plan where the donor names the Trust as beneficiary of an inheritance, life insurance policy, other cash assets and/or monetary gifts.

A third party supplemental needs trust can be established and funded during a donor’s lifetime. The minimum initial contribution to establish a third party trust is $10,000 upon acceptance of the completed sponsor agreement, which further agrees to funding the trust up to $25,000 within 5 years of establishing.

In Trust I, upon the death of the beneficiary, the first $25,000 of the principle remains with the AHRC Foundation. The remaining funds are then distributed according to the wishes of the donor/person who established the trust. In this way, funds are available during the lifetime of the person who is disabled, and can flow to others when no longer needed by the person.

Community Trust II is a First Party Trust. Community Trust II allows people with developmental disabilities who already have their own resources through income, inheritance, lawsuit award or legal settlement to participate and thereby protect their assets while maintaining their eligibility for public benefits. These trust funds can be utilized by the person to enhance their overall quality of life. Upon the death of the person, the funds remain in the pooled trust for the benefit of other trust participants. There is no government payback required.