The necessity of a trust like The Arc’s may become even more apparent over the next year. Indiana is applying for a new Medicaid Waiver known as the "Support Services Waiver." This Waiver can have a very positive effect on day services for people with disabilities. Currently, day services are paid with state dollars. These dollars are limited. The Support Services Waiver will allow day services to be funded through Medicaid under the Support Services Waiver. This will bring new money into the system and help reduce waiting lists for services.

But eligibility for the Support Services Waiver is limited to people who are eligible for Medicaid. If your son or daughter is not eligible for Medicaid, then he or she won’t be able to use the Support Services Waiver. Your son or daughter might not be eligible for Medicaid because his or her resources exceed the Medicaid maximum. You could use Trust II as a way to gain Medicaid eligibility. The trust would pay for items and services not available through Medicaid.

Following is a brief history and background of The Arc of Indiana Master Trust.

In late 1988, The Arc of Indiana introduced a trust service for people with disabilities. The purpose of the trust was to supplement, not supplant, government benefits like Medicaid, Supplemental Security Income (SSI), and Indiana’s Supported Living program. The trust was designed to answer a question often asked by parents: "When I die, how will my child’s personal needs be met?" Many parents have found The Arc Trust to be a dependable answer.

Now in its fourteenth year of operation, this service (known as Trust I) has over 900 families enrolled. Funded accounts (accounts are usually funded at a parent’s death) exceed 300 and have a combined value of over $33,000,000.

In 1993, the U.S. Congress passed legislation allowing people with disabilities to fund their own trust and still retain eligibility for Medicaid. A few years later, Congress extended this provision to include SSI. Now people with disabilities who are otherwise ineligible for Medicaid and SSI can put their money into a trust like The Arc’s and remain eligible for these important benefits.

Recognizing how this new federal law could help people with disabilities, The Arc created a second trust. This trust is called Trust II. While most Trust I accounts are funded by parents, most Trust II accounts are funded by people with disabilities.

To date, over 700 people with disabilities are enrolled in Trust II. The current combined value of Trust II accounts is over $7,500,000. The total value of Trust I and Trust II funded accounts exceeds $33,000,000.

A prominent feature of both trusts is the reporting role played by The Arc. If a trust creates either income or countable resources, then your child’s eligibility for benefits like Medicaid and SSI is in danger. The Arc knows how the trust can be used without creating income or countable resources. As part of its responsibility, The Arc reports all trust disbursements to appropriate government agencies and explains why neither income nor countable resources have been created. If you want experienced and knowledgeable representation for your child who is disabled, The Arc Trust might be appropriate.

If you want to arrange for a free presentation to your local parent group, or if you want material for yourself about Trust I or Trust II, call or write: