Setting Up a Special Needs Trust in Illinois

If you have a disabled loved one who receives state and federal entitlements, we can help ensure that they keep those entitlements while still being eligible to receive supplemental public benefits.

The options that allow them to do so are a Pooled Third Party Supplemental Trust, the Pooled Self Funded Payback Trust, and the Tandem Trust. Each of these Trusts is operated by Life’s Plan, Inc. Each of these individual trust options ensures that the beneficiary has an enhanced quality of life.

Different Types of Special Needs Trusts

The Third Party Supplemental Trust is part of a pooled trust that’s available to individuals with disabilities, the elderly, and their families. With this pooled trust, the individual can utilize their family assets without jeopardizing losing supplemental government benefits.

Pooled Trust

This financial entity has been approved by the Social Security Administration and the Department of Healthcare and Family Services.

Any finances that are left in the Third Party Pooled Trust in the case of the trust beneficiary passing away is distributed by the grantor. Options for distribution include:

  • Life’s Plan Trust will keep 25% of the remainder, and 15% of that will be designated to the trust to continually provide services to individuals with disabilities, while the other 10% will go towards charity. The remaining 75% of the funds is distributed to the beneficiaries based on the grantor’s choices.
  • All of the remaining funds in the trust are distributed to the beneficiaries as the grantor sees fit. This option meets the rules and regulations of the Social Security Administration and the Illinois Department of Healthcare and Family Services.

Self Funded Pooled Payback Trusts (D4C)

Self-Funded Payback Trusts are another type of trust where each beneficiary holds a separate account. The trusts are available to those with disabilities, the disabled elderly, and their families. This allows them to use their individual assets while still receiving SSI and/or Medicaid.

If the beneficiary passes, any funds that remain in the Pooled Payback Trust are given back to the state. The individual trusts are paid out as decided by the trust creator. 15% of the funds are kept by Life’s Plan for administrative costs, and 10% is given to charity. The Department of Healthcare and Family Service is paid back the remainder of the costs.

Contact Us Today

We understand that setting up a special needs trust in Chicago can be complex, which is why Life’s Plan is here to help. We are experts in the field and have helped countless families just like you prepare for the future. Our goal is to set your loved ones up for success in every aspect of their lives. Government assistance and supplemental needs trusts can be extremely beneficial, but they must be set up the right way in order to be successful.

Special needs planning can take some time, which is why we encourage you to start sooner rather than later. Contact us today to get started building a special needs trust and to learn about all the services we offer.