Why would you want to set up a Trust for your loved one?

Life happens. You want to make sure that your loved one is taken care of for their lifetime, and don’t want to worry what will happen if something happens to you. You need to plan for the unthinkable.

We’ve seen it before and will see it again.

A family has two children. The parents leave money intended for their disabled child to their other child. The 2nd child promises to take care of their sibling for their lifetime. But what happens when:

  • The 2nd child dies prematurely?
  • The 2nd child gets divorced & 1/2 the money goes to their spouse?
  • The 2nd child has financial trouble & takes “just a little bit” to help themselves out?

We always want to think that our loved one’s will keep the best interest on an individual with a disability in mind, but it’s not always that easy. That’s where the Maine Trust comes in. We are the only pooled trust in Maine dedicated to non-elderly individuals who have disabilities. This means that we offer lower maintenance fees for the person setting up the account and the guarantee that the money intended for your loved one is used for their needs.

Contact a Lawyer

An Elder Law Attorney (or one that specializes in will planning) can walk you through the process. If you need help locating one, visit the Maine Bar Association.

Download Forms

Feel comfortable setting up a trust yourself? You can find the forms you need here.

FREQUENTLY ASKED QUESTIONS

Who Can Set-up An Account with the MTPD?

Parents, Siblings, Caregivers, Social Workers, anyone with a interest in helping the individual with a disability. The accounts can be funded by the family (or caregiver), or the individual themselves (more information below).

Do I Need to Have a Lawyer Set-up the MTPD Account?

No. Although not required, we strongly advise you to seek legal and or tax representation before making any decisions about MTPD accounts. The best way to do this is to find a lawyer licensed in the State of Maine. The Maine Bar Association has a lawyer referral service on their website.

What's the Difference Between an MTPD #1 Account and a MTPD #2 Account

An MTPD Trust #1 account can be funded with the assets of any person except the individual with disabilities. For example, parents and grandparents of individuals with disabilities can fund an MTPD Trust #1 account. An MTPD Trust #2 account, on the other hand, can be funded only with assets that are owned by the individual with disabilities who will be the beneficiary of the account.

Current law requires that, following the death of the beneficiary, the remaining property in the account (called the “residue”) must be treated differently, depending on which type of MTPD account has been established, as follows:

MTPD Trust #1: Following the death of the beneficiary, the residue can be distributed to any family member, other individual, or to a charity, including MPTD as designated in the Joinder Agreement by the family member who sets up the account.

MTPD Trust #2: Following the death of the beneficiary, the residue must first be used to reimburse the State of Maine for the Medicaid benefits received by the beneficiary. If there are any remaining funds in the residue after repayment to the State of Maine, then the remaining funds can be distributed to any family member, other individual, or charity, including MPTD designated in the Joinder Agreement.

For more Frequently Asked Questions about the Maine Trust click here.