Establishing a Trust

Although a trust can be established without professional advice, MSNT strongly encourages consultation with an attorney and financial or tax professionals prior to opening a special needs trust to help determine whether a special needs trust is right for your situation. Because first party trusts are irrevocable, it is important to explore whether the trust will accomplish the desired goals and outcomes for the person with a disability and involved family members. It is important that you have the opportunity to ask questions about the terms of the MSNT trust agreement and that you give careful consideration to designation of co-trustees and remainder beneficiaries and establish investment directives for the trust account.

 

To establish a trust with MSNT, you must first determine whether a first or third party trust is needed so you can select the appropriate documents for completion and submission to MSNT.

First Party Trust

First Party Trust Documents

  • Instructions for Completing a First Party Declaration of Trust
  • Declaration of First Party Trust
  • Investment Agreement
  • Enrollment Fee Form
  • Beneficiary Background Information (BBI) Form

Third Party Trust

Third Party Trust Documents

  • Instructions for Completing a Third Party Declaration of Trust
  • Declaration of Third Party Trust
  • Investment Agreement
  • Enrollment Fee Form
  • Waiver of Revocability
  • Beneficiary Background Information (BBI) Form

 

Completion of the forms requires a series of decisions regarding designation of a co-trustee and successor co-trustees, trust investment decisions, and naming remainder beneficiaries if any funds remain after any Medicaid claim is paid. It will be helpful to have as much identifying and contact information for the beneficiary, co-trustees and successors, and remainder beneficiaries to assist with locating them at the closure of the trust which may be in the very distant future. The Beneficiary Background Information (BBI) Form is especially important for proper administration of the trust in terms of distributions, eligibility reviews and expenditure planning.

 

Contact MSNT to request a trust packet that contains paper copies of these forms and additional information about MSNT.

 

MSNT encourages you to contact our office with questions or assistance as you complete the forms. MSNT staff are also available to review drafts of completed forms and advise of additional information necessary to open a trust account. All forms must be completed and submitted to MSNT with enrollment fees to establish an active or inactive account.

  • A minimum deposit of $500 is required to open an active account.
  • An enrollment fee of $500 is also required at opening and is deducted from the account established with the initial deposit.
  • The enrollment fee may be reduced based on income.

Once MSNT confirms all the necessary information documents and information have been submitted and MSNT receives the initial deposit to the account, MSNT can open the account. Typically, the account can be opened within 2-5 business days.  Contact MSNT to request expedited opening.  If possible, MSNT will attempt to process the opening.