Master Trust Accounts and Social Security

Master Trust Account Legal trust document Created to manage and protect funds received by DCF for children in foster care Sub Accounts: Current Needs Long-Term Needs Plan for Achieving Self-Sufficiency Disabled Children: Disabled special needs SSI Lump Sum Distribution Medicaid Income Trust

What Kinds of Funds? Social Security Funds: Other Sources of Funds: The funds can come from all different funding sources. The most common source is Social Security Funds If a child is employed their salary should not go into a master trust account, but into the child's own bank account. Social Security Funds: Supplemental Security Income (SSI) Need based benefits for children or adults with disabilities Has a $2,000 balance limit, once the account limit is reached the social security payments will stop and the child's Medicaid may also be impacted Social Security (SSA) Benefits based on parents' past earnings Includes death benefits Other Sources of Funds: Inheritance (both monetary and property) Life Insurance Lawsuits

Social Security Funds Social Security Dependents Benefits: Parent is disabled, deceased, or retired and has worked enough to qualify for social security benefits. Child can get up to 50% of the amount the parent is entitled to if the parent is disabled or retired; 75% if the parent is deceased. Social Security Benefits for Disabled Young Adults: Often called “adult child” benefits extension of the dependents benefits discussed above; the extension is for disabled children only. For a child who is disabled when he or she turns 18, or for a young adult who becomes disabled before turning 22, the Social Security dependents benefits discussed above can be continued for as long as the person is disabled. That is, the disabled child can collect SSDI if a parent, adoptive parent, or stepparent is receiving Social Security retirement or disability benefits (SSDI) – or was entitled to one of these benefits before they died.

Social Security Funds Supplemental Security Income: When the child is disabled and the household income qualifies. Disabled definition: Child must not earn over $1,130 a month Child must have a physical or mental condition, or a combination of conditions, that result in "marked and severe functional limitations". The condition must seriously limit the child's activities and must be a long term condition. If the child is in a medical facility and insurance is paying for it the amount is limited to $30 a month For some medical conditions, the federal government will make SSI payments immediately while the state is deciding if the child has a qualifying disability (which can take up to 6 months).

Monitoring the Master Trust In every Judicial Review Report filed by the Department, if a child has a Master Trust, the Department is required to include: the balance of the child's master trust funds; a copy of the account statement; a fee waiver application A monthly summary of the amount of money in current trust fund accounts is sent out. If an expenditure equals $500 or more, then the parents (if their rights are intact), guardian ad litem, and child's attorney (if applicable) must be notified.

Paying the Board Rate There is a legal presumption that the Department can use a child's Master Trust funds to pay for the child's board rate. Prior to paying the board rate a monthly allowance (usually $30) is set aside for the child's use. Fee waivers allow for a wavier of board rate so that this money does not come out of a child's Master Trust account and can be applied for by any interested party, including the GAL.

Using the Money The money should be withdrawn and used to meet the current needs of the child. "The amount of money withdrawn shall take into account the need of the department or agency, as the trustee of a client's money and property, to provide for the long-term needs of a client, including, but not limited to, ensuring that a client under the age of 18 will have sufficient financial resources available to be able to function as an adult upon reaching the age of 18, meeting the special needs of a client who has a disability and whose special needs cannot otherwise be met by any form of public assistance or family resources, or maintaining the client's eligibility for public assistance, including medical assistance, under state or federal law."

Examples of Needs Examples of Current Needs: Cost of current board rate/residential facility fee Expenses for medical, psychological, psychiatric, or dental treatment which Medicaid does not cover Personal comfort items including clothing, radio, television, tape player, alarm clock, books, art supplies, sports equipment, and special activity fees Transportation (mass transit, cab or carpool) to and from work, school or other activities) Examples of Long-Term Needs: Educational or vocational needs including testing, tuition, books, equipment, tools, uniforms, etc. Independent living expenses including security, utilities deposit, furniture

Turning 18 Absent a disability, when a child turns 18, they are entitled to receive the remaining trust funds in their account. If a child has a disability that prevents them from being able to handle their own finances then the money can go to a guardian advocate if one has been appointed under the Regis Little Act.