General Information for Attorneys

The CCT Endowment Fund is a statewide, non-stock, non-profit Virginia Corporation qualified as a 501(C)(3) entity under the Internal Revenue Code. The CCT provides people with disabilities the opportunity to have a trust that does not jeopardize entitlement benefits. CCT offers two types of trusts:

The Pooled Disability Trust is established by the person with a disability who comes into a sum of money.

The Special Needs Trust is established by family members, usually as part of an estate plan.

The Commonwealth Community Pooled Disability Trust was set up in 1994 in response to the sweeping changes in the Medicaid rules under the Omnibus Budget Reconciliation Act of 1993 (OBRA - 93). The Pooled Disability Trust assists persons with disabilities who have assets of their own (such as a personal injury settlement, social security back payment or inheritance), who are otherwise eligible for Medicaid and other public benefits.

The Pooled Disability Trust, one of a limited number of such post-OBRA Pooled Trusts in this country as of this date, fits under the exceptions to 42 U.S.C. § 1396 (P), which restricts the use of trusts by individuals who have assets of their own (such as a personal injury award), who are otherwise eligible for Medicaid and other public benefits. An exception is created for a trust managed by a non-profit association comprised of the funds of disabled persons pooled for the purpose of investment.

It is possible for a Court to order that structured settlement payments be paid to the trustees of the Pooled Trust for the benefit of the disabled individual. Also, it is possible for the person with a disability (or guardian, etc.) to transfer assets to the Trust on his/her behalf.

The CCT Special Needs Trust was established in the fall of 1990 to provide a convenient and economical way for parents of children with disabilities to have funds administered for supplemental needs over and above available entitlement programs. Approximately 27 states have master special needs trusts similar to CCT.

The CCT Master Trust Agreement, with amendments, is recorded in the Chesterfield County Circuit Court Clerk's Office, and interested parties sign a "Joinder Agreement". Detailed information about the individual with a disability is maintained by CCT and updated annually.

Funded accounts with the CCT are administered by The Trust Company of Virginia, a licensed trust company under state law. The Trust Company of Virginia is advised by the Board of Advisors of CCT, currently consisting of seven to twelve individuals. Under the terms of the CCT trust, at least two members of the Board of Advisors must be related to a person with a disability and the rest have a professional or personal interest in issues relating to individuals with disabilities.

The benefits of a community trust are several:

• Specialized knowledge of the basic and unique needs of people with disabilities
• Does not entail the principal requirements or fee structure often encountered in establishing a bank trust
• Will monitor and safeguard the beneficiary's SSI and other benefits on an individual basis
• Can assure that changes in the laws and regulations will be known so that necessary changes can be made in each individual's program
• Provides required reporting to Social Security and Medicaid
• After the beneficiary's death, any remainder in the Special Needs Trust can be dispersed to the donor's designated beneficiary, as permitted by law

The personal care and advocacy services needed for each beneficiary would be handled by the appropriate case manager, family member, or representative payee.

Copies of letters of approval for the Special Needs Trust and the Pooled Disability Trust, issued by the Social Security Administration and/or the Virginia Department of Social Services as well as information on beneficiary designations and other Joinder paperwork, are available upon request.

Attorneys, please contact CCT if you would like some additional information for a Court Petition or Order if you are dealing with either:

1. a merger of an existing testamentary special needs trust into CCT (Master Special Needs Trust); or
2. a court ordered settlement of a disabled individual under age 18, in accordance with VA Code 8.01-424 (Pooled Disability Trust)

For more information contact Joanne Marcus, MSW, Executive Director.