Midwest Special Needs Trust Account Banking and Investments
MSNT contracts with Landmark Bank to hold trust assets in individual trust accounts and manage investments for trust accounts. Although MSNT is a pooled trust by federal regulation, the Board has determined that each account is to be separately invested in one of six mutual fund options offered by Landmark Bank as authorized by the settlor in the trust agreement. Landmark Bank sends a quarterly account statement to the named co-trustee of the account and any questions should be directed to MSNT.
Mutual funds provide diversification of investments which are designed to be more stable. Descriptions of the investment options include the asset allocation mix for the model portfolio and are available on the MSNT website. MSNT staff are not investment advisors and cannot provide investment guidance to settlors regarding investment elections. MSNT encourages the settlor to discuss investments with trusted professionals and to consider a variety of factors including but not limited to risk tolerance, the time horizon for use of the account and investment goals to preserve the account’s assets and maximize benefit to the trust beneficiary. Investment accounts are not FDIC insured. Investments involve risks and the market balance of trust accounts can fluctuate due to investment losses as well as gains.
Model investment portfolio descriptions and allocations are described in the trust agreement as well as in our Investment Description Summary.
Investment Direction and Selection
When MSNT trust documents are completed to open a special needs trust account, the settlor must complete instructions to direct the investment of account assets when the assets are greater than $10,000. The settlor may either –
- elect to manage investments by selecting the option to self-direct investments and choosing from one of six mutual fund options available; or
- designate MSNT as trustee to direct investments as determined by the investment policy of the MSNT board.
All accounts under $10,000 are invested in the Capital Preservation Mutual Fund Portfolio by direction of the Board of Trustees unless the settlor has opted for Money Market, a more conservative option. When the Board is responsible for investment directions for accounts greater than $10,000, the accounts are invested in the Growth portfolio.
Investment performance for trust accounts is monitored by the Board and updated performance charts are posted quarterly approximately one month after the quarter’s end. Information on past performance is not necessarily a guide to future performance.