Life Plan Trust: Commonly Asked Questions

About Life Plan Trust

by Susan Hartley, Executive Director, Life Plan Trust

Many of you are aware of the Life Plan Trust Program, a non-profit organization started jointly by The Arc of North Carolina and NAMI North Carolina (formerly the North Carolina Alliance for the Mentally Ill) in 1990. Life Plan Trust works with families of individuals with developmental disabilities, mental illness and other disabilities to help develop comprehensive plans for future care, and can serve as trustee for funds designated for your family member's benefit. Additional Sponsoring Organizations include the Autism Society of North Carolina, and Easter Seals UCP of North Carolina. Here is a brief progress report and answers to commonly asked questions about the Life Plan Trust program.

1. Where are Life Plan Trust services available?

We provide services across the state of North Carolina. Our main office is located in Raleigh area, with additional staff persons in Asheville and Wilmington to cover the eastern and western regions of North Carolina.

2. Where and how are client Trust funds invested?

Trust monies are invested with Wachovia's Charitable Services Group. Life Plan Trust's Board of Directors decides how the funds are to be invested. Presently, Trust funds (long term investments) are invested as follows: 40% bond funds, 60% equity (stock) funds. There is a separate fund for cash needs over the next one to two years.

3. How many clients does Life Plan Trust presently have?

Life Plan Trust has 224 families enrolled with Careplans in place. There are 112 clients who are "active." These clients have either received contractual services from Life Plan Trust within the last year or are currently receiving services, such as trusteeship, representative payeeship, visits, advocacy, or other assistance. Currently, over $5,600,000 is invested for our 92 trust beneficiaries.

4. What fees are involved to enroll and participate in Life Plan Trust?

The Enrollment Fee is currently $900. The Annual Update fee is currently $200 and will never increase once a family has enrolled. Services are currently $70 per service hour. The Enrollment fee and Annual Update fees can be paid in monthly installments over a period of months or years.

5. Are the fees families pay to Life Plan Trust tax deductible?

Fees for client services, such as the Enrollment fee, Annual Update fees, and fees for service hours would not be tax deductible because those are fees paid for services rendered. However, any contributions made to Life Plan Trust are tax deductible because of our corporation's 501 (C)3 status.

We are currently developing a Challenge Grant opportunity, where individual contributors can have their contributions matched by other donors. Please contact our office for additional details.

6. Can Life Plan Trust serve as guardian of the person or estate?

While Life Plan Trust is equipped to serve as guardian of the person or estate, the guardian is actually appointed by the Clerk of Court. Families can nominate Life Plan Trust to be guardian of their child and Life Plan Trust can serve in that role, if the Clerk of Court finds that the individual is incompetent to handle his or her affairs. The wish for LPT to serve as guardian would need to be addressed in the family member's Careplan, and service hours and funds set aside for that purpose. Life Plan Trust can also assist with referrals to other non-profit organizations who serve as guardian.

7. What types of services can Life Plan Trust provide for my family member with a disability?

Examples of some services Life Plan Trust can provide include:

(Services Life Plan Trust can provide are not necessarily limited to the ones mentioned above. However, Life Plan Trust cannot provide residential services, nor provide the primary supervision for a person with a disability in a living situation.)

8. What about other services or resources Life Plan Trust staff provides?

Life Plan Trust administers the Work Incentives Planning and Assistance (WIPA) with funding from the Social Security Administration. Our project is called Making Employment a New Success, or MEANS-LPT. Our WIPA  project is located in the western part of North Carolina. MEANS helps individuals who receive SSI or SSDI benefits to be aware of work incentives offered by the Social Security Administration, and to make informed choices about returning to work. For more information, contact Anne White at 1-888-211-6607, or email at meanswnc@earthlink.net.

9. Can clients use their family attorney to draw up the trust document and will?

Yes, you can choose any attorney to do your will and trust. A sample trust document will be provided to the selected attorney. If the attorney is not familiar with trusts for individuals with disabilities, Life Plan Trust will be happy to answer any questions he or she may have, in addition to reviewing the trust document and will. Life Plan Trust also sells a booklet entitled, 'The Professional's Guide to Estate Planning for Individuals with Disabilities" (7th edition) to help your attorney in preparing these documents.  The book sells for $25.00 to family members and $36.00 to professionals.  An updated version of "Estate Planning for Families of Persons with Disabilities"(5th Edition) is available for $20.00.  In addition, Life Plan Trust presents Continuing Legal Education seminars each year to educate attorneys in preparing Special Needs Trusts. The CLE will be held in two locations this year:  in Asheville and in Raleigh.  For additional information and a registration form, please contact the central office 1-888-301-0799.

10. I don't know any attorneys. Can you recommend a good one to help set up our trust and will?

While Life Plan Trust does not recommend or endorse any attorneys, we do keep a list of attorneys who have either prepared a special needs trust for one of our clients, attended a Life Plan Trust Continuing Legal Education seminar, or has purchased our materials on estate planning. This list is divided by region and is available free of charge upon request.

11. 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 chosen in the Careplan. 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 the amount of cash available for supplemental support.

12. What happens to trust funds when the beneficiary dies?

According to the trust agreement and Life Plan Trust's policies, part of the remainder stays with Life Plan Trust, Incorporated to help assist other clients. The remainder share kept by Life Plan Trust is never more than 50%, and ranges from 10-50% depending on the number of years the client has been served. If the beneficiary lives to the life expectancy agreed upon by the family and Life Plan Trust, it is unlikely that much, if anything would remain in trust at his or her death.

13. Can anyone contribute to my son or daughter's trust fund?

Yes - and there are some situations where an individual who is disabled can set up a similar trust with his or her own funds (remainder is required to go to the Division of Medical Assistance to reimburse Medicaid if Medicaid services have been provided). Ask Life Plan Trust about OBRA trust provisions.

14. 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 of your contract by removing the bequest which would have provided funding to the trust (or by changing the beneficiary on your life insurance policy). Medicaid and SSI rules require that these types of trusts be irrevocable in order to continue benefit eligibility for the beneficiary. LPT is glad to handle trust funds in the present, if you wish to start your trust now: but funds cannot be returned to you or anyone else after they have passed into the trust. Enrollment and annual fees are not refundable.

15. Is Life Plan Trust bonded?

Yes, our corporation maintains a Corporate Fidelity Bond to ensure the ethical handling of client trust funds.

16. How can I get more information about Life Plan Trust?

By calling the Life Plan Trust Program at 1-888-301-0799(Central office), 1-888-683-0096 (Asheville office), 1-866-690-9309 (Eastern office) and requesting an information packet be sent to you - there is no charge. You may also attend a Future Planning Seminar in your area, or ask your local NAMI, Arc, Easter Seals UCP or Autism affiliate to schedule one by speaking with Life Plan Trust staff. After reviewing our written materials or attending a seminar, you may call Janita Moody or Susan Hartley at the Central office, Ranette Fischer in the Eastern office or Tammy Whited in the Asheville office. After you have made your decision to enroll, call and ask for our enrollment forms - fill them out and send them back to our office to get the enrollment process started.

Remember, developing future plans is essential to your family members' well being. Medicaid, SSI and Section 8 benefits can be jeopardized if the individual with a disability has assets over $2,000 or monthly income exceeding $623 in their own name. Life Plan Trust can be a resource to you in your quest to develop an effective future plan.

Central Office:  LPT, 122 Salem Towne Ct, Apex, NC  27502
Email: lifeplantrust@earthlink.net

Western Office: LPT, P.O.Box 16916, Asheville, NC 28816

Email: lptinwnc@earthlink.net

Eastern Office:  LPT, P.O. Box 12575, Wilmington, NC  28405
Email:  lptinenc@aol.com

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Last modified: July 2007