The Golden State Pooled Trust
Trust Enrollment Instructions
for the
Referring Attorney
Step One: Counsel Client
Each of the following issues should be discussed with a potential beneficiary:
1. Authorization of Attorney Fees: Remind Trust Beneficiary that signing the Joinder Agreement authorizes the payment of your attorney fees for your services (the Beneficiary Advocate will not be required to authorize a disbursement request for the fees incurred to join the GSPT). Future fees will require a payment request form signed by the beneficiary advocate.
2. Disbursements that may jeopardize public benefits: Disbursements for food, gas and electricity, water, sewer, heating fuel, garbage removal, real estate taxes, rent or mortgage can jeopardize government benefits eligibility. If beneficiary wishes the trust to pay for any of these items, he/she must be counseled as to the consequences.
3. Disbursement Spending Plan: establish a spending plan to provide for specific distributions to be made based upon the amount in the trust and the number of years the trust assets will be needed to provide for the beneficiary, and the public benefits available to the beneficiary. See attached Spending Plan Spreadsheet as a guide.
When submitting disbursement requests please consider the following:
a. When practical, re-occurring bills should be paid in advance to limit check requests and avoid the potential costs associated with late fees.
b. Allowable low dollar repeat monthly bills may be paid up to a year in advance for the Trust Beneficiary’s convenience.
c. Most disbursements are approved and checks are mailed within five business days from date the request is received.
d. Some payments to third parties such as credit card companies may require the payment stub for the proper application of payment. If checks are returned for any reason GSPT will mail the checks made payable to the third party directly to the Trust Beneficiary, or the Advocate, who will then remit payment with the original required stub.
4. Initial and Annual Costs: The initial and annual costs associated with the administration of the GSPT Account can be found on the Fee Agreement.
5. Fund Availability: The Beneficiary’s Trust Account must have funds available prior to submitting disbursement requests.
a. Upon confirmation of funding from Wells Fargo, GSPT staff will send orientation information to the named Beneficiary Advocate. Referring attorneys will be copied on this letter. See Step 6 for Beneficiary Orientation
b. A one week waiting period from date of funding is required before disbursement requests can be submitted.
6. Disbursement Procedure Requirements: In order for distributions to be made from the GSPT the following procedures must be adhered to:
a. No funds can be made payable directly to the Trust Beneficiary.
b. All disbursements must be payable to a 3rd party.
c. All disbursements must be for the sole benefit of the Trust Beneficiary.
d. All disbursement requests must be submitted with adjoining copies of the applicable bill, invoice or receipt.
e. The Advocate must authorize all disbursement requests. If a Trust Beneficiary is his or her own Advocate, a successor Advocate must be designated in the Joinder Agreement.
7. Other Information pertaining to disbursements:
b. A maximum of five checks can be issued from an account per month with a $25.00 per check charge for any additional check request.
c. Any checks returned by a payee will be forwarded to the Trust Beneficiary and/ or Advocate to resubmit the payment to the vendor with an original bill.
d. A $50 per hour surcharge may be assessed to the beneficiary's trust account if excessive research and staff time is required to process a request.
8. Taxes
a. Pooled Special Needs Trust Individual Trust Accounts are treated as grantor trusts. A K-1 will not be provided for this type of trust.
b. Please instruct the Trust Beneficiary that he/she is required to report any income or dividends accrued from the trust on his or her annual tax return. The year-end statement from the trust’s Investment Adviser can be provided to the Trust Beneficiary’s tax accountant for this purpose. The trust can pay any tax liability.
Step Two: Complete Data Collection Form
1. Request a Data Collection Form by writing shelley@gspt.org
a. Fill in the blank fields
b. Email the form to shelley@gspt.org
c. Within 2-3 business days, a completed enrollment packet will be emailed to you as the referring attorney.
2. The Joinder Packet consists of the following documents:
a. Master Pooled Trust Joinder Agreement
b. Fee Agreement
c. Termination Agreement
d. Pooled Special Needs Trust Limitations Disclosure
e. Beneficiary Advocate Acceptance of Duties
f. Disbursement Spending Plan
Please call GSPT at 877-336-3096, Ext 81 if you need an expedited trust packet.
Step Three Signing and Mailing Instructions
1. The Trust Beneficiary must sign the following documents:
c. Master Pooled Trust Joinder Agreement (This document requires a notarized signature)
d. Fee Agreement
e. Termination Agreement
2. The Beneficiary Advocate must sign the following documents:
f. Pooled Special Needs Trust Limitations Disclosure
g. Beneficiary Advocate Acceptance of Duties
3. Mail all original documents (see Step #2-2 above) to:
1436
4. Upon receiving documents, GSPT staff will sign and return a copy of the fully-executed documents to your office for your records.
5. As the referring Attorney, you are responsible for advising the appropriate government benefits agency that your client has established a pooled special needs trust with GSPT. See sample letters on the GSPT Knowledge Base
Step Four – Funding Trust (initial and future funding)
1. Existing investments
If the trust account will be funded from existing investments please call Wells Fargo Bank directly so that a migration plan can be implemented to minimize capital gains or losses to your client.
Contact:
Richard Groscost
Richard.S.Groscost@wellsfargo.com
626-535-9808