Providing peace of mind to individuals
with disabilities and their families since 1998
HISTORY OF AFT
➢ ACHIEVA - Formerly ARC Allegheny
• Grassroots organization started by parents in 1950s out of concern for
their children with disabilities
➢ In 1993, the Social Security Administration enacted
legislation that allowed for the creation of Pooled Trusts
• In 1998, fundraising efforts allowed for the establishment of AFT,
making ACHIEVA the first organization in the state with a Pooled Trust
➢ ACHIEVA Family Trust
• Currently more than 2,100 accounts and more than $100M in assets
under management
• Services are provided for persons with all disabilities,
across Pennsylvania and 12 other states
SERVICES PROVIDED
BY
ACHIEVA FAMILY TRUST
➢ Corporate Trustee for Special Needs Trusts for individuals with disabilities
➢ Trusts can be established for a $500 minimum deposit, with reasonable
fees for administration
➢ Knowledgeable Trust Administrators have extensive experience with social
services and government benefits to help preserve eligibility for essential
government services, at no additional cost
➢ Manages and distributes funds to improve the quality of life for individuals
with disabilities, recognizing their individual preferences and capabilities
➢ Provides Future Planning resources for individuals with disabilities and
their families, including referrals, planning tools, supports that augment
government funded services and trust management
SERVICES PROVIDED TO THE LEGAL
COMMUNITY
AND
NONPROFIT
➢ No cost Case Consultations and assistance with government benefit
questions to determine if a Special Needs Trust is necessary
➢ Advice on drafting of trust documents that includes providing sample
language for a Third Party Special Needs Trust
➢ Continuing Legal Education on topics related to Special Needs Trusts
➢ Monthly e-newsletter
➢ Free online Personal Planning Guide
SPECIAL NEEDS TRUSTS ADMINISTERED BY AFT
➢
A trust is designed for beneficiaries who are disabled, either
physically or mentally
➢
Used for supplemental and extra care over and above what the
government provides
➢
For the sole benefit of the beneficiary
➢
SUPPLEMENT: Can be used for supplemental items such as
clothing, vacation, medical needs, transportation, recreation,
entertainment
➢
SUPPLANT: Cannot be used for housing, grocery food, utilities,
cash access
➢
Home purchases and accessibility renovations may be
considered and paid for from a Special Needs Trust
SPECIAL NEEDS TRUSTS
➢Types of Special Needs Trusts
• Pooled
• Payback
• Third Party (sometimes referred to as Common Law)
➢Exemption
• Resources in Special Needs Trusts are not considered available as cash
assets, and therefore, do not count against eligibility standards
• Allows individual to have above the $2000 SSI limit or the $8000 Waiver limit
POOLED TRUSTS
➢ 42 USC §1396p(d)(4)(C)
➢ Trust is established and maintained by a non-profit association
➢ Beneficiary must be disabled as defined in 42 U.S.C. §1382c (a)(3)
➢ May be established by an individual with a disability (beneficiary), parent,
grandparent, legal guardian, or Court
➢ Generally funded with assets belonging to the individual with a disability
➢ Standard documents allow for accounts to be created quickly and cost effectively
➢ Distributions must be for the sole benefit of the beneficiary
➢ Funds are pooled for investment but accounted for separately
➢ Beneficiary should be under 65
➢ At beneficiary’s death, remaining funds stay with the trust
• ACHIEVA Family Trust Charitable Residual Program
PAYBACK TRUSTS
●
42 USC §1396p(d)(4)(A)
●
Individual and/or Corporate Trustee
●
Beneficiary must be disabled as defined in 42 U.S.C. §1382c (a)(3)
●
May be established by an individual with a disability (beneficiary), parent,
grandparent, guardian or Court
●
Generally funded with assets belonging to the individual with a disability
●
Must be drafted by an attorney and approved by DHS
●
Distributions must be for the sole benefit of the beneficiary
●
Court approval required for minors, incapacitated
●
Beneficiary must be under age of 65
●
Residual funds at beneficiary death must pay back state(s) for all
●
Medicaid (MA) benefits
•
Any amount remaining after state payback can be directed to
family / friends / charity
THIRD PARTY TRUSTS
➢
PA Case Law: Lang v. Commonwealth of PA, Dept of Public Welfare, 515 PA 428,
528 A.2d. 1335 (1987); et al.
➢
Established by friends or family; someone other than the individual with a disability
➢
Individual and/or Corporate Trustee
➢
Funded with assets belonging to third party
➢
Inter vivos or testamentary or both
➢
Must be drafted by an attorney
➢
Magic words: supplement, not supplant
➢
Remaining funds can be left to family members / friends / charity
➢
No age limit
ABLE ACT
●
The Achieving a Better Life Experience or ABLE Act was signed into law by
President Obama on December 19, 2014
●
Creates a new provision under Section 529 of the IRS Code establishing ABLE
accounts, which allow individuals with a disability to save for qualified disability
related expenses, much like a traditional 529 plan allows for saving for educationrelated expenses
●
The Pennsylvania ABLE Savings Program is administered by the PA Treasury
Department - PAABLE.gov or 855-529-2253
TRUST ADMINISTRATION
➢ All Trust Administrators (5 currently), have a social services background
with an average of 20 years of experience in the field
➢ Trust Administrators work directly with the beneficiary and/or their family to
determine the best use of trust funds to enhance the quality of life for the
beneficiary, while protecting essential government benefits
➢ Trust Administrators educate and advocate for services that may
potentially preserve trust assets for beneficiaries. This includes maintaining
relationships with a wide network of social service agencies, the Social
Security Administration and the PA Department of Human Services
➢ The process to access trust funds is efficient and convenient.
Disbursements can be made through various methods in a timely manner
including same day if needed
➢ Charitable Residual Program
CHARITABLE RESIDUAL PROGRAM
➢ Since it’s inception we have disbursed more than $4 million
➢ Funds have been disbursed for camps / recreation, home and vehicle
modifications, ipads, medical needs or supplies
➢ Applicants can reside anywhere in Pennsylvania
➢ Online applications are available at ACHIEVAFamilyTrust.org
TRUST INVESTMENTS
➢ Trust assets are managed by PNC Institutional Asset Management
and Capital Group Private Client Services
➢ AFT’s Investment Policy is designed to protect and prudently grow the
trust assets:
• 50% Equity
• 50% Fixed Income
➢ Investment Policy reviewed and approved annually by both Investment
Managers; AFT Investment Committee; AFT Board; ACHIEVA Finance
Committee and ACHIEVA Board
HISTORICAL INVESTMENT PERFORMANCE
➢ AFT’s Total Fund Performance
(Includes both PNC and Capital Group results)
•
•
•
•
2013
2014
2015
2016
12.47%
4.70%
0.16%
5.19%
Market Value as of 5/17/17: $106,992,086
NEW SERVICES
ACHIEVA Family Trust now offers:
➢ Online access to trust accounts
➢ Trustee Services for Individual Retirement Accounts (IRAs)
when coupled with a Special Needs Trust
➢ The ability to accept Real Estate in certain situations
➢ Satellite location in Erie, PA with additional locations planned
FUTURE PLANNING PROJECT
United Way of Allegheny County
➢ Results of a survey conducted with caregivers showed that fewer than half
of respondents reported having wills and / or plans for their dependent’s care
when they can no longer provide that care.
FUTURE PLANNING PROJECT
➢ Three Year grant from United Way to provide Education & Outreach for
Caregivers and Support Coordinators
➢ Included presentations to community groups, attendance at vendor fairs, a
monthly newsletter, annual Speaker Series and a online Free Personal Planning
Guide
➢ Involves facilitating additional access for families to competent legal services
➢ Engaged approximately 70 attorneys to provide legal services for families of
individuals with disabilities
➢ Offered families a free legal clinic with attorneys associated with the project
➢ Provided a free CLE training on Special Needs Trusts for Personal Injury
Attorneys
➢ Proposal for expansion of Future Planning
Amy Dolan Strano, Esq.
President
[email protected]
412.995.5000 x 405
Michelle Sipple
Vice President
[email protected]
412.995.5000 x 479
711 Bingham Street
Pittsburgh, PA 15203
Phone: (412) 995-5000
Fax: (412) 995-5013
achievafamilytrust.org