Starting a Trust
It is convenient and straightforward for your organization to establish its own Provider Trust. Once the decision has been made, the following steps are required.
- Accepting the Provider Trust as the organization's special needs pooled by signing the Master Trust Agreement.
- Verifying tax free status with IRS letter and Notice of New Employer
- Designation of signers and agents of the trustee
- Delivery of a Grantor Agreement for the establishment of the pooled trust's first trust account
Once the four steps above take place, your organization can establish important policies such as who participates, investment guidelines, trust distributions, as well as discretion regarding the remainder account.
Arlington supports the provider's efforts with training, orientation and materials for staff and families. Please contact us for a copy of the master trust agreement for the Provider Trust.
The Provider Trust has no minimums to participate and no minimum annual fees. Many competing trusts have both; such as policies stipulating a minimum starting balance of $5,000 or more. Or a minimum charge of $500 to $1,000 to an individual trust account if the annual percentage fee falls short.
Balance minimums and fee minimums can make it difficult for individuals with modest sums to participate in a special needs pooled trust.
Arlington's trust management fee is 1.5% of assets per year with no absolute minimum. Investment management and trust agency fees are also low. Total fees per account do not exceed 2.5% per year. This percentage is a wrap fee and includes tax reporting, consultation, customer service, statements, and training.