Funding & Financial Planning
Families participating in The Arc Trust come from many different economic backgrounds. Some may be able to fund the account with a large sum of money, while others may be able to contribute a modest amount. The most important factors to consider when funding an account are how much you can afford, the type of lifestyle to which your child is accustomed, and what his or her needs may be.
Families usually fund the trust with proceeds from their estate, life insurance death benefits, 401Ks, retirement accounts or other means. The most common methods by far are through the estate via a will or living trust and life insurance benefits. However, sometimes other relatives may wish to contribute to the trust account.
The minimum amount to fund a Trust I account is $30,000, and the minimum amount to fund an account before disbursements will be made is $10,000. Generally, funding a trust does not result in a tax deduction, but your financial planner or attorney may have further information about whether partially funding a third-party Special Needs Trust has any advantages.
If an account is funded before disbursements will be made, it will remain in a deferred status and will be charged the applicable Maintenance Fee. Once the account is fully funded, it enters authorized status and will be assessed the applicable Consulting Fee. The Arc Trust encourages families to seek advice from an attorney, accountant or financial planner when determining how to best fund a trust. The Arc of Indiana is not affiliated with any attorney, accountant or financial planner.