Preparing for Your Child’s Future Today

By Shane Service, J.D.

Trust Director

Arc of Indiana Master Trust

As the Medicaid landscape becomes increasingly unpredictable, it is even more important for parents of a child with a disability to begin planning for their child’s future.    Income that a person with a disability receives from government programs like Medicaid and SSI may not be sufficient to meet all of his or her needs.   As long as parents are alive, they can supplement their child’s income by providing him or her with those things in life that are necessary and/or pleasurable, but not covered by Medicaid, SSI, or other means-tested government programs.   At some point, however, parents are forced to ask the question, “ how will my child’s material needs be met when I am gone?”   For many families, the answer is a special needs trust.  

The Arc of Indiana has operated a trust service continuously since 1988.   This trust is called The Arc of Indiana Master Trust.   Its purpose is to help parents and other family members to leave funds for their son or daughter without affecting his or her eligibility for Medicaid, SSI and other state or federally funded residential programs.  

The Arc of Indiana Master Trust operates two master trusts.   Trust I is normally funded by parents at the time of their death though a will, life insurance policy or other similar instrument. For this reason, you do not have to be wealthy to enroll in The Arc Trust.   When the trust is funded by someone other than the disabled beneficiary, The Arc Master Trust does not retain any of the money remaining in the trust after the beneficiary has passed.   The donor of the money (parent, etc.) has full control over where all of the remaining money goes after the beneficiary of a third party trust has passed away.  

Trust II was designed in 1995, pursuant to new federal legislation allowing persons with disabilities to fund their own special needs trust with money that originally belongs to them, rather than a parent or some other third party.   Both Trust I and Trust II have the same purpose:   to provide the disabled beneficiary with the extras in life that are not covered by Medicaid, SSI or other similar programs, such as Indiana Supported Living, and the Medicaid Waiver programs.

Regardless of the parents’ age or the age of their child, planning for the future is crucial.     As one of our former Presidents said:   “The time to repair the roof is when the sun is shining.”   Although The Arc of Indiana Master Trust is not the only financial planning option for Indiana families touched by a disability, we remain a leader in the special needs trust arena.   Please give us a call for more specific information regarding how The Arc Trust works.   We look forward to learning how we can help you provide for your child’s future well-being and happiness today.   The Arc of Indiana Master Trust * P.O. Box 80033 Indianapolis, IN 46280 * (317) 259-7603 * Toll Free (877) 589-8848.

NOTE:   The Indiana Department of Education does not endorse the Arc Master Trust, or any other trust or financial planning instrument such as wills or life insurance.   Contact your attorney or financial advisor for guidance regarding your child’s specific needs and resources.   This article is presented to increase awareness of the need to plan ahead for your child’s future.

                                                                                                Arc Trust Fall 05 INDEPENDENCE