Community Trust II is a “self-settled” or “first-party” trust, meaning it is established with a disabled person’s own funds. A Trust II sub-account may be established by a parent, grandparent, legal guardian or the disabled person himself or herself. A sub-account may also be established by court order. The beneficiary may access the funds for expenses not covered by his or her government entitlements.
At the end of the beneficiary’s lifetime, any funds left in his or her sub-account remain in the trust to benefit other people with disabilities. There is no requirement to “pay back” Medicaid for services the beneficiary received.
A trust sub-account may be established with a minimum of $10,000. The fee for establishing a Trust II sub-account is $750. No trustee fees are charged. There is an administrative fee of 1 percent of the balance in each sub-account on December 31st of each year. Wilmington Trust, which is the custodian and investment manager of the trust, charges fees amounting to approximately 1 percent annually. There are also small charges for insurance and tax preparation.
Click here to read the Trust II Master Trust.
Click here to view and/or print a Participant Agreement.
Click here to print a W-9 Form (required to establish a Trust II sub-account).