We understand there are a lot of unfamiliar terms you will encounter when researching special needs trusts and other planning tools. Hopefully, this glossary of terms will help you better understand some of the trust-related language commonly used.
The annual projected spending budget determined each year for each beneficiary’s sub-account. Annual Spending Target Examples are provided as a general guideline for what a spending target might look like based on lifetime benefits.
The person(s) named in the Joinder Agreement who are authorized to submit disbursement requests and communicate with OSNT staff on behalf of the beneficiary.
A Positive Behavior Support Plan (PBSP) uses Positive Behavior Support (PBS) approaches to create a range of strategies which not only focus on addressing challenging behavior(s), but also include ways to ensure the person has access to things that are important to them.
A person for whom a sub-account has been established.
A person appointed to manage and protect the income and assets of a person who is financially incapable. Oregon Statute defines the term “financially incapable” as a condition in which a person is unable to manage his or her financial resources for various reasons. Conservatorship is appointed and supervised by the court. For purposes of establishing an OSNT sub-account, the court may assign a temporary conservator for the sole purpose of establishing and funding the sub-trust.
Any payment made directly from a sub-account on behalf of the beneficiary.
A person who establishes and funds a third-party trust sub-account for the benefit of the beneficiary, but with assets not belonging to the beneficiary.
A trust account funded with assets from someone other than the beneficiary. Also referred to as a “third-party” trust account. These funds typically come from an inheritance that is left specifically to the trust for the benefit of the beneficiary, rather than directly to the beneficiary.
The requirements that must be met by a beneficiary before an account may be established. To qualify as a beneficiary, an individual must reside in Oregon at the time of enrollment and must meet eligibility requirements for Social Security Disability.
The process of completing and submitting a Joinder Agreement and supporting documentation in order to open a sub-account in the OSNT.
The term “Financially incapable” is described in Oregon Revised Statute (ORS) 125.005(3) as:
“a condition in which a person is unable to manage financial resources of the person effectively for reasons including, but not limited to, mental illness, mental retardation, physical illness or disability, chronic use of drugs or controlled substances, chronic intoxication, confinement, detention by a foreign power or disappearance. “Manage financial resources” means those actions necessary to obtain, administer and dispose of real and personal property, intangible property, business property, benefits and income.”
This requirement applies even if the beneficiary has a guardian or conservator, as the rules in Oregon do not extend full authority for the establishment and funding of irrevocable trusts to guardians or conservators.
A sub-trust account funded with the beneficiary’s own assets. More commonly referred to as “beneficiary funded”, but also known as “self-settled”. The source of funds may be from an injury settlement, a Social Security back payment, excess resources or an inheritance.
A sub-account that has been opened and money deposited into for use by, or on behalf of, the beneficiary.
The person authorized to establish an account, transfer funds, and sign the Joinder Agreement on behalf of the beneficiary. In a beneficiary funded trust, the beneficiary may be the grantor of his or her own trust, but the grantor may also be a parent, grandparent, guardian/conservator or the court. In a donor-funded account, the grantor is the donor.
A person appointed by the court to provide for the care, comfort and maintenance of another person. In Oregon, a guardian may be appointed for an adult person only as is necessary to promote and protect the well-being of that person. Guardianships for adults must be designed to encourage the maximum self-reliance and independence of the protected person.
The ISP is the written details of the supports, activities, and resources required for a person to achieve personal goals. The ISP is developed to articulate decisions and agreements made during a person-centered process of information gathering and planning. The general welfare and personal preferences of the individual are the key considerations in the development of the plan. Development of an ISP is a governmental service that is provided at the county level, and is required for any person receiving paid services through Oregon’s Office of Developmental Disability Services.
A trust established by a person that become effective during his or her lifetime.
A trust that the settlor or grantor cannot terminate after it has been created.
The contractual agreement establishing a sub-account in the pooled trust.
The Omnibus Budget Reconciliation Act of 1993. It authorized the establishment of certain types of supplemental needs trusts, including pooled trusts, that are managed by non-profit corporations for the benefit of individuals with disabilities.
A trust permitted by federal law that enables a disabled beneficiary, under age 65, to protect his or her own assets by transferring them to a supplemental needs trust and still qualify for governmental benefits, such as SSI or Medicaid. Upon the death of the beneficiary, the state has the right to be reimbursed for the amount of correctly paid Medicaid benefits on behalf of the beneficiary. Any remaining trust assets in excess of the payback amount may be distributed as designated by the grantor.
A trust that combines the assets of many individuals into a single (pooled) trust fund. Separate accounts are maintained for each beneficiary, but funds are pooled or the purpose of investment and management of the funds. Pooled Special Needs Trusts must be administered by a non-profit organization and are open to people of any age who meet the Social Security Administration’s definition of a person with a disability.
A written authorization to represent or act on another’s behalf in private affairs, business, or some other legal matter. Not all POA’s have explicit authority to establish an irrevocable trust.
Also referred to as “remainderman”. The person or persons to receive the remainder funds from an account after the death of the beneficiary. In a first-party trust, remainder beneficiaries receive funds remaining after any State claims against the assets have been satisfied.
The assets remaining in a sub-account at the time of a beneficiary’s death. Funds remaining in a donor funded account are disbursed according to the donor’s wishes as outlined on the Joinder Agreement. Any funds remaining in a beneficiary funded account and not retained by the trust must be used to repay the state for any Medicaid assistance provided to the beneficiary before distributing to any remainder beneficiaries.
A sub-account in which the goal is to ensure that funds are available for a beneficiary throughout his or her lifetime, but that will also have a zero balance at the time of the beneficiary’s death.
A sub-trust account funded with the beneficiary’s own assets. More commonly referred to as a “beneficiary funded” or “first-party” sub-trust. The source of funds may be from an injury settlement, a Social Security back payment, excess resources or an inheritance.
A trust used to provide supplemental care; care that is over and above what the beneficiary is able to obtain through his/her own earnings and/or through government benefits. A properly worded and executed Supplemental Needs Trust will not jeopardize government benefits. Also known as a Supplemental Needs Trust.
A trust account funded with assets from someone other than the beneficiary. More commonly referred to as a “donor funded” trust account. These funds typically come from an inheritance that is left specifically to the trust for the benefit of the beneficiary, rather than directly to the beneficiary.
A trust established under a will.
A sub-account set up without any initial deposit, but rather in anticipation of receiving inheritance dollars in the future. Also referred to as a Zero-Balance Account.