The Developmental Disabilities Endowment Trust Fund was established in recognition of the high cost of lifetime services and supports for people with developmental disabilities. The Endowment Fund was established by the Washington State Legislature to assist people with developmental disabilities and their families to use individual special needs trust accounts to save for future needs. The state has provided $5 million in matching funds to help these accounts grow over time.

What is a Special Needs Trust?

A special needs trust is a trust designed to shelter and preserve assets that would otherwise disqualify the beneficiary from government benefits that have a dollar limit on available assets.  The Endowment Fund is a special needs trust that will preserve access to fundamental benefits such as Supplemental Security Income and Medicaid that provide basic food, clothing and shelter for people with developmental disabilities.  This means that money put into a special needs trust is not counted against income or assets for the purposes of applying for or continuing eligibility for Social Security (SSA) or Supplemental Security Income (SSI).  The trust fund money may be spent with wide latitude, supporting the choices made by each individual family.

How the Endowment Fund Works

Any person may establish or contribute to an individual trust account on behalf of a person with a developmental disability. The Endowment Governing Board, appointed by the Governor, sets policy for the program, and the Office of Community Development provides staff to support their activities. The Washington State Investment Board manages the investments.

The Arc of Washington State has been selected to be the Trust Manager for the Endowment Fund. They provide enrollment services, accept deposits, authorize and provide disbursements and offer continued support and information for families regarding any questions or concerns about their trust accounts.

State Matching

The state will pay up to $7,750 in matching funds by providing a 25 percent match on private contributions up to $31,000 per beneficiary account. There is no limit on the amount each individual can invest—only on the state match.

How Can Money From the Trust Account Be Used?

Disbursements (payments) from the Developmental Disabilities Endowment Trust can be used for a variety of life-supporting and life-enhancing expenses, including:

• Education, information and training opportunities

• Living arrangements, including personal assistance services, skill building, financial management, medical monitoring, meal preparation, shopping, home maintenance and house cleaning

• Unusual or extraordinary disability-related shelter expenses

• Capital expenses, including environmental modifications and transportation

• Employment supports and tuition

• Social productivity and personal fulfillment activities, such as volunteering, club membership and recreation

• Assistive technology, including computers and electronic equipment

• Specialized clothing or clothing not covered by public benefits

• Respite care

• Disability-related support groups

• Medical care, counseling, therapies and other health related services, including alternative practitioners, not covered by public benefits

• Utility and transportation costs

• Vacation, travel and recreation

• Birthday and holiday presents for the beneficiary to give to others

• Advocacy and legal services

• Individual trust account expenses including enrollment, bookkeeping, tax return preparation and filing, tax payments, annual management expenses and other trust related fees

• Items the Trust Manager deems appropriate and reasonable within the guidelines of the Governing Board

Are There Any Fees?

The Endowment Fund operates on a fee for service basis. It will only be able to continue operating if the fees are sufficient to pay the costs of managing the Endowment Fund. The costs are incurred by the trust manager, the bookkeeping contractor, state agencies and the governing board.

Each account will be charged an enrollment fee of $600. For accounts with access to matching money an enrollment match of $600 will be credited to the individual's trust account and begin to accumulate earnings when the enrollment process is completed. (This $600 enrollment match is only in effect through June 2007.) The enrollment match cannot be spent prior to vesting. Matching funds allocated for this purpose will not count against the beneficiary's maximum annual or lifetime match.

• Developmental Disabilities Endowment Trust Fund (Access Washington)
  http://www.ddefwa.org/

• Developmental Disabilities Endowment Trust Fund (The Arc of Washington State)
  http://www.arcwa.org/ETFendowmenttrusthome.htm
  

FINANCIAL: About | Organizations | Publications | On-line Resources