Who Can Set Up A Trust ?
A special needs trust must be set up by a third party and cannot be funded with money that has been left directly to the beneficiary. The individual who sets up the trust, or the Settlor(s), is usually a close family member of the beneficiary.  Either the Settlor(s) or the beneficiary must be a resident of Virginia Beach at the time a Virginia Beach Community Trust is established.

Who are the trustees?
The board consists of two attorneys, a certified public accountant, a certified financial advisor and an insurance broker. Most of the board members have a family member with a disability. Three of the trustees were among the original group of volunteers who researched specialized trusts in 1980.

How do I establish a trust?
Call one of the two trust coordinators for an appointment to meet and begin the process for establishing a trust, Joanna McAnulty at (757) 385-0645 for beneficiaries with developmental disabilities and LeAnne Brant at (757) 385-0800 for beneficiaries with mental illness.

How are trust fund monies managed?
Old Dominion Trust Company manages the money in funded trusts. Old Dominion Trust Company is a privately held trust bank that serves individuals, families, businesses and institutions throughout eastern Virginia and Hampton Roads. Their services include bookkeeping, accounting, annual audit and other record-keeping services as required or negotiated. The board of trustees does not charge does not charge fees to individual trusts. However, Old Dominion Trust Company's fee structure includes 3/4 to 1 percent of the established fund on an annual basis and a minimal investment management fee. The board of trustees exercises its fiduciary responsibilities by determining the asset allocation strategy for the Trust. As a result, these funds are in a diversified investment portfolio that seeks to generate the highest possible return at an acceptable level of risk. Old Dominion Trust Company staff regularly attend quarterly meetings of the board of trustees to monitor and review portfolio performance.

How much money should be placed in a trust?
A special needs trust is intended to safeguard and supplement benefits offered by entitlement programs. This trust is not intended to be an all-encompassing trust. It cannot be used to pay for housing or food. The trust fund can only be used to pay over and above basic maintenance as is stipulated in the trust documents. In addition, the Virginia Beach Community Trust is for families who do not have sufficient resources to establish a trust with a bank. Currently, the average trust value is about $50,000. Most trusts are limited to a maximum amount of $100,000; however, trustees may accept amounts up to $150,000 when it is not economically feasible for the Settlor(s) to establish a private trust.

How are trust fund disbursements made?
When a trust is funded, requests for expenditures can come from beneficiaries themselves, client advocates for the beneficiaries or a case manager/direct services staff. All requests go through the trust coordinator. Requests are then presented to the trustees. The trustees take several factors into making a decision, such as:

    Is the disbursement legal or would the expenditure be considered food 
    or shelter?

    Will the disbursement primarily benefit the beneficiary?

    What is the total amount of the disbursement compared to the balance
    of the trust?

    How much has been disbursed from the account over the past
    12 months?

All board trustees must approve an expenditure before it can be made. Authorization is then provided to Old Dominion Trust Company. Beneficiaries or requesters are never provided cash. The trust coordinator contacts the beneficiary or requester with the trustees' decision. Checks are typically written to vendors or stores for a specified amount. Receipts must be provided to the trust coordinator as documentation for expenses.

How can trust funds be spent?
The Virginia Beach Comunity Trust was developed primarily for individuals receiving SSI and Medicaid benefits. As such, the Trust cannot pay for housing or food because such expenditures could jeopardize those benefits. The trust can be used for several other expenses that greatly enhance the life of an individual relying on government benefits. Consideration is given to the wishes of the Settlor(s). It is important for the Settlor(s) to include a letter of intent when a trust is established. The letter expresses the Settlor(s) wishes for how the trust fund should be spent.

The trust can pay for medical and/or dental expenses not covered by Medicaid. It can pay for vacations, clothing and entertainment expenses, trasnportation, household furnishings, etc. When considering a request for expenditure, the trustees are sensitive to each beneficiary's needs. First and foremost, the disbursement must primarily benefit the beneficiary. Trusts are intended to last the beneficiary's lifetime. Consideration is also given to the amount of the request and the remaining trust balance.

What happens to money left in the trust fund after the beneficiary dies?
The Joinder Agreement includes a section where the Settlor(s) designate(s) how remaining trust money be distributed after the beneficiary dies. The Settlor may designate any number of persons or organizations, with the percentage of the remaining funds each should receive.