Individual Self Funded Payback Trust
(OBRA D4A)
A parent, grandparent, legal guardian or the court can establish an individual pay back trust. It is important to note here that the individual with a disability or who is elderly can not create their own individual payback trust.

Life’s Plan Inc. Individual Self Funded Payback Trust is governed by a volunteer Board of Trustees who establish operating policies, contract for fiscal management and life care planning /social services for the families who participate in the Trust.

The fees associated with an individual pay back trust will relate to the initial legal work to develop the trust and the fees associated with the financial entity holding the funds, and Life'sPlan, Inc. administrative fees.

Any funds remaining in the trust after the death of the individual and repayment of Medicaid benefits can be distributed as directed in the document which creates the trust.

What are the advantages of the individual "payback" trust?

• Allows a family member to act as trustee and determine the frequency and amount of distributions or Life’sPlan, Inc. acts as Trustee and we provide for professional oversight of expenditures.
• Permits expenditure of all of the assets at anytime or as outlined in the Life Care Plan of the trust.
• Maintains eligibility for state and federal benefits.

In what situations would this make sense for my family?
Families with large amounts of money they plan to set aside for their family member with a disability or who is elderly, who want more choices with regard to investment options find this type of trust meets their needs. Many families provide the option of having the funds in their individual trust transferred to a pooled trust if there is no one available or willing to act as successor trustee. Refer to our Tandem Trust option.

Tandem Trust Info

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Pooled Self Funded Payback Trust
(OBRA D4C)
In a pooled self funded trust assets are commingled, all returns on investments are credited proportionately to each individual account.   Expenditures made for an individual are charged to that individual's account. Distributions from the assets are made to fund the supplemental goods or services as defined by the individualized Life Care Plan disbursement agreement.

The Trust is governed by a volunteer Board of Trustees who, establish policies, contract for fiduciary management and generally control and manage the assets of families who participate in the Self Funded Trust. This Board is representative of families with dependents who are disabled, legal/banking professionals and a balanced compliment of members from organizations which serve the best interests of people who are developmentally disabled, mentally ill and/or physically disabled.

What are the advantages of the pooled "payback" trust?

• We serve as a coporate trustee which benefits families when there is no family available or who choose not to act in this role.
• Permits the use of some of the money for charitable purposes after the death of the individual.
• Provides for professional oversight of expenditures.
• Provides increased earnings by virtue of the larger pool of funds.
• Maintains eligibility for state and federal benefits.

In what situations would this make sense for my family?
Families with smaller amounts of money they plan to set aside for their family member with a disability or who is elderly find this type of trust meets their needs. In addition, families with no one to act as trustees use this type of trust or families who also don't want to manage the disbursements of Trust funds.  

Get more information about:
Third Party Funded Trust

Tandem Trust Info

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