Master Trust Declaration and Fee Waiver: Basic Principles and Procedures Office of Family Safety 1317 Winewood Boulevard Tallahassee, Florida 32399 July.

Master Trust Declarationand Fee Waiver:

Basic Principles and Procedures

Office of Family Safety1317 Winewood BoulevardTallahassee, Florida 32399

July 2007

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Objectives

Define the purpose of Master Trust Learn the types of Master Trust sub-

accounts Identify partners involved in the Master

Trust process and list their responsibilities Review the monitoring standards for

Master Trust Review the fee waiver process

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Legal Base and Operating Authority

Section 402.17, F.S.

Chapter 65-C-17, Florida Administrative Code, Master Trust

CF Operating Procedure 175-59, Master Trust Benefits for Family Safety and Preservation Program Clients

CF Operating Procedure 55-7, Fee Assessment and Collection (Chapter 11: Review of Assessed Fees – to be updated)

DCF Accounting Procedures Manual, Volume 7, – Chapter 3 - Client Trust Funds – Chapter 6 - Client Trust Funds Administered by Providers

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Legislative Purpose

Section 402.17, F.S. provides responsibility to the Department and its contracted agents to:

hold in trust and administer money and property of children in care.

act as trustee of the children’s money and property in accordance with the usual fiduciary standards applicable generally to trustees, and

protect both the short term and long term interests of the children for whom a Master Trust account has been established

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is a legal document, on file in the Circuit Court of the Leon County, -- with a copy maintained by the Department’s Agency Clerk -- that authorizes the creation of trust accounts for children in foster care

has multiple sub-account within it each child has his or her own separate account no commingling or pooling of funds

What is the Master Trust ?

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Why Sub-Accounts?

sub-accounts allow flexibility in choosing the right trust account for each child based on amount and source of funds, and the present and future needs of the child.

trust accounts can be:

– revocable or irrevocable

– restricted or unrestricted regarding expenditures

– sheltering or non-sheltering of assets and income.

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Sub-Account Types

accounts available to all children:

Current NeedsLong-term NeedsPlan for Achieving Self-sufficiency - non-disabled

accounts available only disabled children.

Disabled Special Needs SSI Lump Sum distributionMedicaid Income TrustPlan for Achieving Self Sufficiency - disabled

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Sub-Account Types: Current Needs

funds in this account are used to meet the child’s current, ongoing, monthly needs (clothing, shoes, personal items, school activities and trips, sports activities/equipment, computers, software, audio/visual equipment, and recreational activities).

revocable for children receiving Supplemental Security Income (SSI) or Social Security Act Title II (title II) benefits, (representative payee may access the child’s money or property for the child’s current needs).

irrevocable for non-SSI/Title II children is freely accessible to meet the child’s current needs. money in this account does count toward the SSI asset limit.

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Sub-Account Types: Long-term Needs

is intended to conserve and invest the funds for the child’s long term needs (college education, vocational training and employment related costs)

revocable for children receiving SSI and title II benefits, (representative payee may access the child’s money or property for the child’s ongoing needs)

irrevocable for non-SSI or non-title II children may not be accessed for any reason until the child reaches age

18, or leaves the care, custody or control of the Department money in this account does count toward the SSI asset limit

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Sub-Account Types: Plan for Achieving Self-sufficiency - Non-Disabled

is established to conserve money for children who do not receive SSI benefits (ideally >15 – 18 < years old, or younger child with special abilities)

funds are used to meet the child’s vocational goal expenditures must be consistent with the approved PASS plan revocable for children receiving Title II benefits, (representative

payee can access or transfer the child’s Title II benefits into another appropriate sub-account in the event the child’s PASS-ND plan is transferred, abandoned, amended or terminated)

irrevocable for children who do not receive either Title II or SSI benefits

money in this account does not count toward the asset limit for Medicaid eligibility.

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Sub-Account Types: Disabled Special Needs

a.k.a. “dedicated” sub-account, holds retroactive lump sum, underpayments or past due benefits.

withdrawals/expenditures are made after legal review and written permission from the Region/Circuit leader or designee.

revocable for SSI children (the Department may access the child’s money or property to meet the disabled child’s special needs)

irrevocable for others. two types of special needs sub-accounts can be established:

Zebley Lump Sum and The SSI Lump Sum monies in these accounts do not count toward the SSI asset limit.

must to be established prior to release of the funds from the

Social Security Administration

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Sub-Account Types: SSI Lump Sum distribution

holds lump sum of retroactive SSI benefits; allowable expenditures for special needs include

medical treatment; education or job skills training; personal needs assistance (other than basic maintenance costs); special equipment; housing modifications; and therapy or rehabilitation

other items or services that the Social Security Administration determines to be appropriate

expenditures must be beneficial to the child and related to the child’s impairment and there is no other funding source.

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Sub-Account Types: Medicaid Income Trust

sub-account is for children who are or who will be qualified for skilled nursing home care under the Medicaid program.

only current monthly income of the client may be deposited into this sub-account and is available to pay the client’s share of the skilled nursing home care.

money in this sub-account does count toward SSI asset limit.

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Sub-Account Types:Plan for Achieving Self Sufficiency - Disabled

plan is for older children who are disabled and are conserving funds to meet a vocational goal.

must complete a PASS plan that has to be approved by the Social Security Administration

revocable for children receiving SSI Benefits (representative payee may access the child’s money or property in connection with expenditures related to the child’s approved PASS plan, or for the reimbursement to the Social Security Administration of SSI benefit payments that were received in connection with the funding of the PASS plan prior to its transfer, amendment, abandonment or termination)

as long as the approved PASS plan is in effect, funds placed in this sub-account do not count toward the SSI asset limit

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the Department is the trustee of the accounts of the Master Trust; some Community- Based Care Agencies are assisting the Department in administering and managing the accounts

each Region, Circuit and Community-Based Care (CBC) agency must establish local procedures for ensuring that Master Trust is correctly implemented

the following partners play a key role in establishing and managing Master Trust sub-accounts in each Region, Circuit and CBC:

– Case ManagerCase Manager– Fiscal OfficerFiscal Officer– Child Welfare Legal ServicesChild Welfare Legal Services (CWLS) Attorney

Role of the Department/CBC

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Master Trust – Process

When a Child comes into care:

– determine whether the child has assets (e.g., money or property)

– determine appropriate Master Trust sub-account(s) based on child’s needs and source of Trust income

– establish the appropriate Master Trust Sub-account(s) and notifies the court

– manage the sub-account(s)

– provide required reports to court and others as allowed or required by the trust document

When the child leaves care:

– notify the court of the termination of the Trust and, if need be, the creation of new trust accounts

– dispose of the assets as directed by the court and the trust document

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Role of the Case Manager: Creating the Account

determine if a child has or will receive money or property determine which sub-account(s) is most appropriate for the

child complete the Notarized Designation of Client Money and

Property form submit form to CBC, Circuit or Region Fiscal Office to

establish sub-account(s) per local procedures send copy of form to CWLS

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Role of the Case Manager: Creating the Account

act as a prudent parent looking out for the child’s best interest: plans for the child’s current and future needs

Good practice is to establish an Expenditure Plan to manage money when a sub-account is first opened

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• make expenditures to meet needs of child

• manage balances• the cumulative balances for children receiving SSI

with current and long term needs sub-account(s) must not exceed $2,000

• complete an Expenditure Plan when cumulative balance in sub-account(s) reaches $1,500 (required by CFOP 175-59)

Role of the Case Manager: Managing the Account

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Role of the Case Manager: Managing Expenditures

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• Include information on the Judicial Review Social Study Report (JRSSR) regarding the current quarter’s status/balance in the child’s sub-account

• Complete a Notice of Changed Circumstances form whenever there is a major change in the child’s financial circumstances or a sub-account is closed

• Make a recommendation to the court in the JRSSR for disposition of the funds in the sub-account when circumstances warrant the closing of a child’s account (e.g., reunification, child turns 18 or is adopted, etc.)

• disposition of the funds is at the court’s discretion

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establish the Master Trust account/sub-account(s) maintain the original Notarized Designation of Client

Money and Property form in child’s fiscal file send copy of the Notarized Designation of Client Money

and Property form to the requesting unit and to Child Welfare Legal Services

maintain an up-to-date listing of clients with Master Trust accounts - account activity and balances

provide copy of quarterly accounting for each child with a Master Trust Account to appropriate program office staff

adhere to other established procedures

Role of the Fiscal Office

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Role of Child Welfare Legal

• provide notice to appropriate parties that DCF/CBC has accepted the position of Trustee for the child

• submit a copy of the child’s most current quarterly accounting to the court at each Judicial Review

• consult with the case manager in planning and submitting the recommendation for the court’s disposition of the child’s funds

• provide notice of hearing to the Agency for Healthcare Administration regarding the disposition of the child’s Trust Funds

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Monitoring Standards

all children in licensed foster care who have or will receive money and/or property must have a Master Trust sub-account(s)

there is evidence that a Notarized Designation of Client Money and Property form was completed for children with a Master Trust sub-account

there is evidence that the court was notified of the establishment of a child’s Master Trust sub-account

quarterly statements of Trust Fund balances are submitted to the case manager

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Monitoring Standards

The court is notified at each Judicial Review of a child’s Trust Fund balance

There is an annual accounting of a child’s Trust Fund provided to all required parties

There is an Expenditure Plan to maintain the Trust Fund balance at $1,500 or less for children who receive SSI

The Social Security Administration is notified when Trust Fund balances of a child receiving SSI exceed $2,000

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Fee Waiver

Any child who is in the custody, care, and control of the department in foster care is eligible to apply for a fee waiver.

Fee Waiver is a reduction or deferment of the fees that the Department assesses for the cost of care (65C-17.002(5), Florida Administrative Code)

Fees will be waived, reduced or deferred according to procedures established in 65C-17.004 and 65C-17.005, F.A.C.

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Fee Waiver

The case manager must provide notice regarding the child’s ability to request a fee waiver at the time of each judicial review to the

Child,

Guardian ad Litem,

Child's parents (unless TPR),

Child's foster parents,

Child's caseworker, and

The Court Notification and request are completed via the “Notice of Fee Assessment and

Rights of Foster Child Regarding Government Benefits” (form 0285D). The “Notice of Fee Assessment and Rights of Foster Child Regarding Government Benefits” is available in e-forms.

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Fee Waiver

request will be case specific and individualized submitted through a fully completed “Notice of Fee

Assessment and Rights of Foster Child Regarding Government Benefits” form (form CF 0285D) to the Region, Circuit, or CBC

have certified statements, receipts, bills and/or documentation that substantiate the request attached to the request

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Fee Waiver

Local committee appointed by the Region or Circuit leader or designee will review and approve or deny the request based on the interests the child and the availability of funding.

Each child has the right to appeal the decision of the region or circuit.

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Office of Family Safety Contact

For additional information,

please contact Sallie Linton

at 850-922-0149

or [email protected]