CHARITABLE MISSION OF THEMIDWEST SPECIAL NEEDS TRUST

September 25, 2013 MACDDS Meeting

PRESENTATION OVERVIEW

MSNT Background and History MSNT as a pooled trust Charitable Mission

Charitable Trust MSNT as Trustee

Protecting Benefits MSNT Services

Questions & Discussion

MSNT DEVELOPMENTAL MILESTONES Statute passed in 1989 Corporate status in 1990 First trust opened in 1991 Federal law exempting SNT as countable

assets passed in 2003 Expanded service area in 2005 to

surrounding states Updated statutes in 2011 Relocated to independent offices in 2012 Surpassed 1000 trusts in 2013

Created by Missouri Statute in 1989 as Missouri Family Trust, a public instrumentality of state government

Values-driven board appointed by Governor

Not for profit corporation with 501(c)3 status

Serves Missouri and surrounding states

Receives no state or federal appropriations

WHAT IS A POOLED TRUST? MSNT qualifies as Pooled Trust

Special needs trusts must be established & administered by a non-profit organization

Trust agreements and distributions must conform to federal SSA requirements Trusts for sole benefit of individual with a

disability State pay-back clause required Federal allowance for pooled trust to retain all or

part of the remaining amount at the death of the trust beneficiary

FEDERAL & STATE AUTHORITY PROTECTING PUBLIC BENEFITS FOR SNT LIFE BENEFICIARIES

Exceptions for Counting Trust Resources for Persons with Disabilities

Federal Medicaid Regulations Title 42 US Code Section 1396p(d)(4)(A) Title 42 US Code Section 1396p(d)(4)(C)

State Eligibility Manual for PTD Medicaid Link @ http://www.dss.mo.gov/fsd/iman/medasst/0805-015-10.html

SSI Section 1917(d)(4)(A) of the Social Security Act Section 1917(d)(4)(C) of the Social Security Act

STATUTORY AUTHORIZATION FOR MSNT §402.199-402.208 RSMO establishes the

Charitable Trust of the Missouri Family Trust Governor-appointed and mission driven Board

Focus on service to PWD and their families Affordable alternative to low to middle income

families MSNT has a statutory duty to protect public

benefits for trust beneficiaries Statute permits MSNT a 25% charitable retention

at death of the life beneficiary MSNT Board responsible for operational

guidelines for the Charitable Trust

CHARITABLE GRANT AWARDS Up to $1000 paid to vendor/provider

directly Only for goods and services prospectively

based on estimate or treatment plan Two categories

Urgent/dental Twice a month Staff review

General Quarterly Board review

ELIGIBILITY Disability determined by SSA verified by -

SSI for disability SSDI

Income eligibility based on Federal Poverty Guidelines updated at the beginning of each fiscal year

Need demonstrated by treatment plan, estimated cost and application

US citizen and Missouri resident No CT grant award in previous 12 months

CHARITABLE GRANT APPLICATION*

Completed & signed application form

Proof of disability Proof of income Estimate/treatment plan

*MSNT will only consider complete applications!

REVIEW PRINCIPLES Grant award covers

full cost of applicant need(s)

Matching funds from applicant or others

Provider offers discounted service

Grant would be cost effective in reducing future needs

High-value outcomes One-time expenses,

not ongoing commitments

Supplements but does not supplant Medicaid or Medicare coverage

EXCLUSIONS Applicant is in jail/prison Application is incomplete

or unsigned Applicant or any member

of the household has been disqualified from receipt of federal benefits due to a finding of fraud or failure to report to public benefit authorities

Request to reimburse another party for requested goods/services

Experimental or cosmetic

Applicant benefits have been reduced or suspended due to overpayment

Applicant fails or refuses to provide information about household

Applicant has history of felony convictions

Request is for vehicle, rent, utilities, groceries, cell phone

Covered by Medicaid/Medicare or other insurance

LOWER PRIORITY IF - Requested items are

disposable and will need to be re-supplied continually for lifetime

Vehicle repair, parts, fuel or mileage, even for medical care

Item is available through accessible public venues such as books, equipment loan programs

More readily available through other charitable entities and not disability-related such as clothing or shoes

Applicant has failed to properly care for and protect similar assets or resources demonstrated by repeated or willful loss/destruction of personal property

ANNUAL DISTRIBUTION FORMULA Approved by the Board each fiscal year Total distributions = 50% of the

charitable remainder +100% dividends and public contributions

For FY 14, $137,859 available for distributions

OPPORTUNITIES Flexible program Greater emphasis on quality of life and

independence Partnership potential

MSNT BOARD ENCOURAGES & INVITES - Supplement to waiver

budgets for ISL for appliances or adaptive equipment

Tuition and costs with programs like Warrensburg campus

Conferences for parents and PWD related to self determination and advocacy

Wonderland and other recreational or therapeutic camps

Ramps, lifts and other adaptive equipment to assist with community living as alternative to institutions

Communication and assistive devices not covered by Medicaid or waiver

REMEMBER - Donations are welcome! Special Needs Trust administration supports

Charitable Trust MSNT is an affordable SNT option for 1st and 3rd

party trusts Referrals are welcome Donor can increase remainder to CT or name

other charitable purposes as remainder beneficiaries

Contact MSNT for to arrange for presentations and exhibit opportunities

ABOUT MSNT Currently administers over 1000 active

accounts, mostly in Missouri with trust account assets exceeding $30 million

Contracts with a banking partner for account custodial services and investment management

In FY 13, the average size at opening was $25,500

Steady growth in number of accounts and total trust assets over the last decade

MSNT AS TRUSTEE MSNT has more than 20 years of experience

Provide consultation on use of trust funds Staff and board knowledgeable about SSI, Medicaid and

services to PWD Minimizes co-trustee burden

Low minimum deposit & minimum account balance Process distributions daily Upon request, submits trust info to SSA/FSD Reasonable administrative fees MSNT offers investment choices for managing

individual accounts

SEARCH FOR MSNT BOARD MEMBERS -

Three vacancies Governor

appointed Welcome you to

identify interested parties

Quarterly meetings

MSNT CONTACT INFORMATION

Midwest Special Needs TrustPO Box 7629Columbia, MO 65205

Phone: 573-256-5055Toll free: 1 877-239-8055Fax: 1 573-303-5866

Email: mftbt@midwestspecialneedstrust.orgWeb: www.midwestspecialneedstrust.org

HANDOUTS Grant applications First and Third party

Trust Packets MSNT Brochures

Set up a special needs trust for Mary

QUESTIONS & DISCUSSION