Shared Horizons Pooled Special Needs Trust 

by Yolanda Mazyck 

    Katie, 56, lives independently in her own apartment in Washington, DC.   Katie has juvenile rheumatoid arthritis caused by rheumatic fever that went untreated and misdiagnosed until the age of five.  She was able to walk until the age of 15, but now uses a motorized chair.

    Katie depends on Supplemental Security Income (SSI) and Medicaid to sustain her basic life needs and medical care, but she is just able to “make ends meet”, and usually has little, if anything, left to cover supplemental needs.  

    Several years ago, Katie received a $25,000 settlement, which, if she received would have made her ineligible for SSI and Medicaid.  Katie’s representatives introduced the Pooled Special Needs Trust as an option for consideration.  After much thought, Katie established a sub-account with Shared Horizons’ Wesley Vinner Memorial Trust.

    Shared Horizons, Inc., a 501(c) (3), was created to manage the Wesley Vinner Memorial Trust--a pooled special needs trust serving District of Columbia and the State of Maryland residents with disabilities.

    Shared Horizons Inc.'s purpose is to offer a solution to the dilemma that many individuals with disabilities, like Katie, face when financial windfalls occur: accept the money and lose their “means-tested” benefits, or refuse the money.  Shared Horizons, Inc., along with other pooled special needs trusts across the U.S., offer this much needed alternative made possible by the Omnibus Budget Reconciliation Act of 1993 (OBRA ’93).  The Act made it possible for assets transferred into a sub-account within a special needs trust to not be counted when determining eligibility for SSI and Medicaid.

    One of the advantages of a pooled special needs trust is the economies of scale reached by pooling the funds of multiple beneficiaries.  This gives individuals with smaller trusts access to professional yet affordable administration and trusty services.

    An attorney may charge up to $5,000 to establish an individual special needs trust, while a bank's trust department rarely accepts amounts under a quarter million dollars.

    Shared Horizons minimal initial account threshold is only $5,000, while their annual sliding scale administration fee starts at only $375.
A one-time enrollment fee of $950 covers the cost of setting up the initial account; this fee is paid upon execution of the Jointer Agreement with each participant.  This Joinder Agreement is the document that spells out the specific arrangement between the trust and the individual and is a guide for all interactions and disbursements.

    Katie established a sub-account by signing a Joinder Agreement, which in-turn created the vehicle to transfer the settlement to the trust.  Katie then met with the trustee to create a Quality of Life Plan, driven by her supplemental needs.  Developing the plan was simple once she understood the rules – special needs trusts can pay for goods and services not covered by SSI and Medicaid. 

    Katie’s needs were basic: she needed household appliances and electronic equipment responsive to “light touch”.  After the initial requests, her focus shifted to enhancing her library, apartment decor, and other personal hobbies.

    The request process for the Vinner Trust is user-friendly to ensure easy-access for all participants.  Requests are made by phone, fax, email, or mail with an invoice, bill, estimate, or receipt.  Beneficiaries or their representative can also request a store gift card for clothing purchases and other personal items.  Fully documented requests, if appropriate, are distributed within three business days of receipt, five if research is required.

    The trust provides Quarterly Statements to participants and their representatives, and Quick Reports are available as needed by request.  Although most of Shared Horizons's beneficiaries do not earn enough income (or dividends) from trust investments to facilitate a need to file, Year-End Statements are provided for tax purposes.  The Year-End Statements are also available to Social Security and state Medicaid programs.

    With each year of service delivery, Shared Horizons and their Board of Directors evaluate their Trust model, and are constantly seeking innovative ways to serve beneficiaries, their families, and the legal community.  A Master Third Party Trust document is being prepared for an early spring implementation, at which time family members and friends can contribute funds to supplement the needs of individuals with disabilities.

Please visit www.shared-horizons.org for more information about Shared Horizons, Inc. and Pooled Special Needs Trusts.

For more information, please contact:

Yolanda Mazyck
Executive Director
Shared Horizons, Inc.
5335 Wisconsin Avenue, NW
Suite 910
Washington, DC 20015
202-448-1460
ymazyck@shared-horizons.org