Frequently Asked Questions

Why a special needs trust?
What does it cost to join?
Why the pooled trust works?
Who may join the pooled trust?
What are your other options?
What happens if a person with disabilities, including those over 65, does not have a special needs trust?
Is there a minimum amount that needs to be invested in the trust?
Who administers the trust?
How can the money be used?


Frequently Asked Questions

Why a special needs trust?
Consider this: A child born with a disability may never be able to get medical insurance. After coverage under their parent lapses—upon turning 18 years of age—a person with special needs may have a preexisting condition that makes them uninsurable. They will have to turn to Medicaid for coverage. However, if they have more than $2,000.00 of assets in their name, they will likely be ineligible for Medicaid.


What Does It Cost To Join?
Initial set up of a Pooled Trust account through Family Network on Disabilities costs NOTHING.

We understand that Special Needs Trusts may remain empty – not funded - for years, and may not be funded until an inheritance is paid, a gift is given, or a personal injury award is received by the beneficiary – the person with disabilities. At the time that the Trust is funded, a one-time administrative fee of $750.00 will be assessed to the account.

There is no minimum fee – just 3.15% of the annual balance, whether it’s $50,000.00 or $50.00. This fee is all inclusive of the trustee, administration, and money management fees. There are no extra fees, hidden fees, or tacked on fees or costs. This fee has never increased during the nearly 10 years that the Pooled Trust has been in operation.

Though the funds in all accounts are pooled for the most earning potential, each account is like a separate trust. We have to account individually for each one. Our investment policy is extremely conservative, with the guiding philosophy being safety and preservation of capital for all those who entrust us with their assets.


Why The Pooled Trust Works
Before we started the Trust, people with disabilities who had less than $500,000.00 to put in a trust had nowhere to go for professional trustee services. The Pooled Trust provides professional trustee, administration, money management, and custodial services at reasonable fees. Our average size of account is between $25,000.00 - $40,000.00. It prevents people with disabilities who have modest amounts of money from having to “spend down” the money until they hit $2,000.00. We designed this to be a simple, “no mess, no fuss,” solution for people with disabilities who have numerous worries in life. Financial issues like this shouldn’t be one of them.


Who May Join The Pooled Trust?
Any person with disabilities who wants to preserve access to assets and still get government benefits can join the Pooled Trust. It works best for persons with disabilities who have their own money – usually from savings, inheritance, personal injury settlement, etc. – that would disqualify them from receiving benefits. There is no age restriction on who can join, unlike other types of special needs trusts.


* What Are Your Other Options?
If the money funding the Trust comes from someone other than the person with disabilities — such as a parent — there are other types of special needs trusts that have more flexibility. If the person with disabilities or their representative is comfortable with choosing a trustee and dealing with issues regarding the management of a trust, there are other options available in such cases.

* Please note that we are not attorneys and cannot provide legal advice. We encourage you to contact experienced legal council to advise you in this area.


What Happens If A Person With Disabilities Does Not Have A Special Needs Trust?
Nothing. As long as there are no assets in their name. However, for persons who cannot get medical insurance, having a sudden increase in net worth WILL exclude them from receiving medical care paid for through Medicaid.

An example would be children with preexisting conditions such as Down Syndrome, Cerebral Palsy, or another disability. While under 18 years of age, these children may be covered under the insurance of their parent or legal guardian. However, after they turn 18, most insurance companies will not provide coverage.


Is There A Minimum Amount That Needs To Be Invested In The Pooled Trust?
We don’t have a minimum. Any amount can be deposited. We are a not-for-profit, grass roots, civil rights organization open to people of all disabilities and ages, races, creeds, colors or economic groups.


Who Administers The Trust?
By law, the trustee of a Pooled Special Needs Trust must be a non-profit organization. Family Network on Disabilities of Florida, Inc. is a 501(c)(3), non-profit organization. We have been in existence since 1985, serving persons with disabilities and their families across Florida, from Pensacola to Key West.


How Can The Money Be Used?
The money can be used for a wide range of things – basically, for any legal expense that won’t interfere with the benefits of the person with disabilities.

The list below illustrates some examples for which payments may be made out of the Pooled Trust.

• Medical procedures not provided by government benefit programs.
• Assistive technology for persons with disabilities.
• Motorized wheelchairs, specially equipped vans, enhanced hearing and vision devices, and similar equipment to improve the quality of life of beneficiaries.
• Care manager services.
• Guardian Fees.
• Attorney Fees.
• Supplemental nursing care.
• Differentials in housing costs between shared and private rooms.
• Travel expenses.
• Entertainment expenses.
• Any other expense not provided by government benefit programs.