FAQs

WHERE ARE LIFE PLAN TRUST SERVICES AVAILABLE?

Life Plan Trust provides services throughout the State of North Carolina. In addition to the main office in the Apex area, there are regional offices that cover areas of the state. Our regional offices are in Winston-Salem and Asheville.

WHERE AND HOW ARE TRUST FUNDS INVESTED?

Trust monies are invested with Wells Fargo’s Charitable Services Group. Life Plan Trust’s Board of Directors review the investments on a consistent basis.

ARE FAMILIES REQUIRED TO LEAVE THEIR ENTIRE ESTATE TO LIFE PLAN TRUST FOR THEIR FAMILY MEMBER’S BENEFIT?

No, only the amount of bequest needed to support the services identified in the Care Plan. Our staff can help estimate what those costs would be over the lifetime of the individual with a disability. Factors affecting the estimated projection are the family member’s age, life expectancy, amount of service hours requested, and costs for supplemental needs.

CAN ANYONE CONTRIBUTE TO MY SON OR DAUGHTER’S TRUST FUND?

Yes, but it is important that other contributors are aware of the need to name the trust as beneficiary in their wills and other legal documents. If a relative leaves money directly to the individual with a disability, it could interfere with benefit eligibility.

WHAT IF I CHANGE MY MIND ABOUT PARTICIPATING AFTER I ENROLL?

If you have planned to fund your trust at your death through a bequest in your will or through a life insurance policy, you may opt out by removing the bequest in the will (which would have provided funding to the trust) or by changing the beneficiary on your life insurance policy.

WHAT IF I WANT TO TAKE MONEY OUT OF THE TRUST ONCE IT IS FUNDED?

Medicaid and SSI rules require that these types of trusts be irrevocable to continue benefit eligibility for the beneficiary. Funds cannot be returned to you or anyone else after they have funneled into the trust. Enrollment fees are not refundable.

I DON’T KNOW ANY ATTORNEYS; CAN YOU RECOMMEND A GOOD ONE?

Life Plan Trust is not able to recommend or endorse any attorneys. You can contact the North Carolina Bar Association and ask for a referral. Life Plan Trust has a legally binding declaration of Trust and Joinder Agreement that is executed during the enrollment to ensure that new parties are added to the Master Pooled Trust and funds are invested and dispersed properly. Our trust have been approved by the Social Security regional office of General Counsel. Life Plan Trust cannot give you legal, financial, or tax advice and advise you to seek independent legal counsel before signing legal documents if you have questions or concerns.

CAN LIFE PLAN TRUST SERVE AS THE GUARDIAN OF THE PERSON OR ESTATE?

Life Plan Trust assists with referrals to other organizations who serve as Guardian of the Person in N.C., as their primary service, such as The Arc of North Carolina’s LIFEguardianship program. Life Plan Trust could provide you with referrals to local agencies that provide Representative Payee as their specialized service. Life Plan Trust does not serve in the capacity as Guardian of the Person, Guardian of the Estate/Conservator, or Representative Payee.

WHAT TYPES OF SERVICES CAN LIFE PLAN TRUST PROVIDE FOR MY FAMILY MEMBER WITH A DISABILITY?

(Please note, this list is not comprehensive):
• Pay bills on beneficiary’s behalf
• Advocate for appropriate services and quality care
• Research available community resources
• Attend treatment planning meetings to help ensure decisions are made in the best interest of the beneficiary
• Shop for clothing and other essentials

*NOTE* Life Plan Trust staff is not able to provide residential services or primary supervision. Also, Life Plan Trust is unable to serve as Guardian of the Person or Guardian of the Estate

IS LIFE PLAN TRUST BONDED?

Yes. Our corporation maintains a Corporate Fidelity Bond.

DOES LIFE PLAN TRUST HAVE A JOINDER AGREEMENT?

During the enrollment process, the grantor will execute our Declaration of Trust and Joinder Agreement. Our legal documents have been reviewed by the Social Security Regional Office of General Counsel (OGC). OGC issued an opinion that our documents meet precedence and complies with the requirements for a pooled trust under section 1917(d) (4) (C) of the Social Security Act, and the relevant provisions of the Program Operations Manual System (POMS). Life Plan Trust staff cannot give you legal advice regarding your estate and advise you to seek independent legal counsel before executing the Declaration of Trust and Joinder Agreement if you have questions or concerns. Additionally, Life Plan Trust cannot give you financial or tax advice and advise you to seek a certified financial planner and licensed tax accountant or certified public accountant to discuss financial strategies and tax questions.

ARE TRUST ACCOUNTS THE SAME AS ABLE ACCOUNTS? DO I STILL NEED TO ESTABLISH A TRUST IF I ESTABLISH AN ABLE ACCOUNT?

There are significant differences in an ABLE account and trust account. ABLE accounts allow for shelter expenses to be paid while still protecting eligibility for SSI and Medicaid benefits. Trust accounts are not able to pay for shelter benefits without jeopardizing eligibility for SSI and Medicaid. ABLE accounts have an annual contribution cap of $15,000 and a total contribution cap of $100,000 before SSI eligibility is impacted. Medicaid will not be impacted no matter how much is contributed to an ABLE account. Trust accounts have no annual or total contribution limit. An ABLE account does not eliminate the need to have a trust account. Depending on the amount of money a beneficiary receives from a settlement or inheritance, an ABLE account may not be a suitable option. An ABLE account provides more autonomy for the beneficiary to manage his or her own funds, but some beneficiaries may not be capable of managing a lump sum of money without oversight.

CAN TRUST ACCOUNTS CONTRIBUTE TO ABLE ACCOUNTS?

Yes, a trust can contribute to an ABLE account. The trust would not provide the funds directly to the beneficiary but could disburse funds directly into the ABLE account.

WHAT FEES ARE INVOLVED TO ENROLL

The Enrollment Fee is currently $950. Services are currently billed at $85 per service hour.

WHAT IS YOUR FEE SCHEDULE FOR ACTIVE TRUST ACCOUNTS?

Fees are deducted each month using the applicable percentages and based on the prior months ending market value. This fee will be reflected on your monthly statement as:

TIERS	RATE
Trusts $500,000-$1,000,000	1.25%
Trusts $1,000,000-$3,000,000	1.00%
Trusts $3,000,000-$5,000,000	0.75%
Balances over $5,000,000	0.50%

SMALL TRUST ADMINISTRATION
$250,000-$500,000	annual rate of $5,000.00
Less than $250,000	annual rate of $2,500.00

WHAT HAPPENS TO THE TRUST FUNDS AFTER THE BENFICIARY DIES?

If the beneficiary lives to the life expectancy predicted by the family, it is unlikely that much, if anything, would remain in the trust at his or her death. If the individual had a trust that required a Medicaid payback, the payback amount typically exhausts the remaining funds. If remaining funds are available, the funds would be disbursed according to the successor beneficiary specified in the trust agreement.

HOW CAN I GET MORE INFORMATION ABOUT LIFE PLAN TRUST?

Please contact Life Plan Trust at 919-589-0017 or 1-888-301-0799. The main email address is [email protected].

919-589-0017