What can the ARC Community Trust of PA do for you?

The Purpose of The ARC Community Trust of Pennsylvania

The Arc Community Trust of Pennsylvania exists to support both persons with disabilities and caregivers in their efforts to attain and maintain a preferred lifestyle for themselves or their dependents-- even after they are no longer providing care. The latter is accomplished by helping caregivers articulate long-term care plans using the Letter of Intent Workbook; by educating persons with disabilities and caregivers on how to protect Medicaid, SSI, and other income-based benefits using a Supplemental Special Needs Trust; and by providing Trustee services for various types of Supplemental Special Needs Trusts.

The “Pooled Trust” of The ARC Community Trust of Pennsylvania

The ARC Community Trust of Pennsylvania also offers a Pooled Trust option. This type of Supplemental Special Needs Trust can only be created and administered by a non-profit agency. As such, The ARC Community Trust of Pennsylvania is “Trustee” of its Pool.

In most trusts, whoever sets up the trust (settlor) designates their choice of trustee or trustees. In Pooled Trusts, settlors may designate requestors (those that can request disbursements). Therefore, even though settlors relinquish control, they are still able make requests about disbursements.

As in other trusts, settlors using The ARC Community’s “Pooled Trust” can add funds at any time, set up an un-funded trust or fund an account through a will. In this kind of trust, however, beneficiaries maintain separate accounts that are pooled for investment. Currently PNC Financial Services Group manages the investment of The ARC Community Trust of Pennsylvania’s Pooled assets. Total cost to its members is 3% annually, which includes bank fees.

A major advantage of utilizing The ARC Community’s “Pooled Trust” is having the ability to set aside much smaller amounts than financial institutions are generally willing to manage, and at a less expensive rate. The major disadvantage is that Pooled Trusts cannot designate secondary beneficiaries. Even though the goal of The ARC Community’s “Pooled Trust” is to spend down each beneficiary’s principal within their lifetime, any assets remaining in the trust will be used for the benefit of others remaining in the pool.

Those interested in joining The ARC Community Trust of Pennsylvania’s Pooled Trust should request a Joinder Agreement and a copy of the Master Trust Agreement. We require that these documents be reviewed and completed with support from a lawyer familiar with Supplemental Special Needs Trusts.