Trust Termination

Third Party Trust & Self Funded Payback Trust (over $70,000)

With Life’sPlan, Inc. Individual Third Party Supplemental Needs Trust 100% of the assets remaining in the Trust Fund are distributed at the direction of the person who creates the Trust.

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With Life’sPlan, Inc. Pooled Third Party Supplemental Needs Trust 25% of the assets remaining in the Trust Fund are distributed to charities that are dictated by the trust and chosen by the person who creates the trust and 75% are distributed at the direction of the person who creates the trust to beneficiaries.

Of the 25% of the assets that are distributed to charities, a minimum of ten percent (10%) of the assets remaining are transferred to the Charitable Fund to be used to provide service opportunities to low-income individuals with disabilities.

An additional minimum of fifteen percent (15%) of the assets remaining at the death of the participant are distributed to a 501(c)3 organization which provides services to individuals with disabilities, as chosen by the Donor.

The balance of the funds remaining in the account of a participant at their death (but not more than 75%) are distributed at the direction of the Donor. This frequently results in a distribution to other children or to grandchildren or may be added to the charitable contributions as outlined above. Many families provide for payment of burial expenses for the individual prior to distribution of this portion.

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Self Funded Payback Trust
With Life’sPlan, Inc. Individual Self Funded Payback Trust the assets remaining in the Trust Fund are first distributed to any State to the extent necessary to provide for reimbursement of expenditures (to the extent such expenditures have not already been reimbursed from any other source) on behalf of the individual by the Illinois Department of Healthcare and Family Services and the Illinois Department of Human Services, or other applicable State agency.

The balance to the account is distributed to any State to the extent necessary to provide for reimbursement of expenditures made (to the extent such expenditures have not already been reimbursed from any other source) on behalf of the individual by the Illinois Department of Healthcare and Family Services and the Illinois Department of Human Services, or any applicable State agency.

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The balance to the account is distributed to the State of Illinois to the extent necessary to provide for reimbursement of expenditures made (to the extent such expenditures have not already been reimbursed from any other source) on behalf of the individual by the Illinois Department of Healthcare and Family Services and the Illinois Department of Human Services.

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Please Note:
The average cost for nursing home care is over $50,000 per year but can exceed $70,000. The average cost to support an individual with a disability in the community is approximately $45,000 per year. Unless the individual has a sizable trust it is very likely that the payback lien imposed by the Illinois Department of Healthcare and Family Services and the Illinois Department of Human Services will exceed the balance of the account in the trust.

Opting to have the balance of the account retained by the pooled trust will support the longevity of a non-profit organization in providing essential trust services to the disabled.  The charitable fund remainder is designated back as a dividend every other year to each active subaccount.