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| The NYSARC Trust and Trust Services |
 NYSARC, Inc. is a family-based not-for-profit, New York State corporation founded in 1949. Its mission is to assist and support children and adults with intellectual and other developmental disabilities and their families in areas such as education, employment, family support, recreation, advocacy, housing and guardianship. NYSARC, Inc. is committed to enhancing not only the desired quality of life for persons with disabilities and their families, but in promoting autonomy, maximizing the development of individual skills, and fostering their integration into the community.
At present, NYSARC, Inc. has chapters located in almost every county in New York State. These local chapters provide a host of programs, supports and services throughout the State of New York.
In response to growing concerns commonly expressed by parents and others for safeguarding the personal and financial future of persons with intellectual and other developmental disabilities, NYSARC, Inc. established The NYSARC Trust (formally known as the New York Retardate Trust) on July 19, 1972.
For further information on Trust Services you can contact the Trust Department at the NYSARC State Office. Call the toll free number, 800-735-8924 or send an email message to trustdept@nysarc.org
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Important Things to NYSARC Trust Services:
What is The NYSARC Trust?
The NYSARC Trust currently consists of two active, separate and distinct
funds (The Unrestricted Fund and The Exempt Fund). The Unrestricted
Fund enables parents, relatives and friends to leave modest to large
size sums of money or other property for the benefit of a person with
a developmental disability. Money or property can be transferred to
this fund either through an inter vivos transfer during the Grantor’s
life or through a testamentary transfer at death. The Exempt Fund,
was established primarily to benefit and support NYSARC, Inc.’s Corporate
Guardianship Program.
NYSARC has operated a trust service continuously
since 1972. Its purpose is to provide a vehicle
for leaving funds to children and adults with intellectual and other developmental disabilities
without negatively affecting their eligibility for
government benefits, such as SSI, Medicaid, and
state or federally funded residential and day programs.
One of the main benefits of a Supplemental Needs
Trust is to enhance the quality of life for a beneficiary
by providing for the purchase of additional support,
services, therapies and other items that are not
covered by nor provided adequately for by available
government programs. The NYSARC Trust provides a
financial vehicle to meet both the anticipated and
unforeseen future needs of persons with disabilities.
Experience has shown that parents who know the capabilities
and needs of their child may be unaware of the legal
devices available to meet those needs. Attorneys
who may be knowledgeable in estate planning may
be unaware of the differing needs of persons with
disabilities. Only through a realistic appraisal
of the individual’s needs and the retention of an
attorney knowledgeable and experienced in estate
planning for persons with disabilities can a parent,
sibling or other relative be assured that his/her
family member will receive the best available assistance
and protection for their financial future.
Estate planning for persons with disabilities can
range from simply creating a Last Will and Testament
containing special trust provisions, to a complex
estate planning arrangement involving a will, an
inter vivos trust, a life insurance trust, other
estate planning techniques, and even guardianship
planning. At a minimum, families should take steps
to secure the financial future of their loved ones.
The NYSARC Trust may be a vehicle to be considered
in formulating an appropriate estate plan.
The NYSARC Trust provides a means by which parents, family members
and friends of persons with intellectual and other developmental disabilities can avoid extraordinary expenses of trust administration
during their lifetime. The NYSARC Trust does not pay any commissions
to its Trustees for their services. This allows a family member with
developmental disabilities to benefit more fully from the income and
principal contributed to the Trust without having to spend precious
resources on Trustee services.
Another distinctive feature of The NYSARC Trust
is that the Grantor may select who will receive
the remainder of any assets held in the beneficiary’s
trust account upon the death of the person with
disabilities (the beneficiary) subject to certain
provisions which are discussed later. In the absence
of any designation of the remainder, any remaining
balance will be made payable to The NYSARC Trust-Exempt
Fund of the Association to be used for the benefit
of its Guardianship Program.
A third significant benefit of using The NYSARC
Trust is that the Trustees are a group of highly
dedicated individuals who possess a working knowledge
of the needs and abilities of persons with developmental
disabilities. Such expertise provides a helpful
contribution to a beneficiary’s overall quality
of life.
Furthermore, each gift or bequest, regardless of
size, receives the same investment management supervision
from the date of contribution. For parents that
do not have other children or relatives that could
act as an independent Trustee, The NYSARC
Trust provides a level of continuity and
financial security for their loved ones.
In summary, there are many benefits associated with
using The NYSARC Trust to meet the unique needs
of persons with disabilities, including:
1) the provision of Trustee services to administer
funds of modest size;
2) continuity of financial management;
3) Trustees who are knowledgeable of the needs of
persons with intellectual and other developmental disabilities;
4) no Trustee commissions; and
5) flexibility to decide who shall be the remainder
beneficiary(ies) upon the death of the disabled
family member.
Unrestricted Fund (Documents available upon request)
The Unrestricted Fund accepts gifts or bequests,
both testamentary and inter vivos, of $25,000 or
more from parents, relatives or friends for the
benefit of a designated beneficiary with intellectual and other developmental disabilities.
The entire income and principal from such gift or
bequest may be paid or applied as directed by the
donor either monthly, quarterly or annually at the
discretion of the Trustees for the benefit of a
person with developmental disabilities. The Trustees
make these distribution decisions in consultation
with the guardian, if any, or interested family
members or service providers. However, it is important
to remember that the ultimate decision with respect
to distributions remains in the sole discretion
of the Trustees. This discretion may be subject
to any limiting provisions contained in the instrument
used to make the gift or bequest. Additionally,
the Trustees may pay any Court approved fees and
reasonable out-of-pocket expenses incurred by any
Court appointed Guardian in the administration of
the Guardian’s duties.
Upon the death of the beneficiary in lieu of commissions
being charged during the existence of the account,
$25,000 of the remaining principal, or the balance
thereof if less than $25,000, shall be paid to the
Exempt Fund (described in a subsequent section)
for the benefit of the Guardianship Program of NYSARC,
Inc. The excess of any principal amount over $25,000
will be paid to whomever the grantor directs in
the trust instrument or will, which might include
the Exempt Fund, surviving children, relatives,
NYSARC or other organizations that the Grantor may
have designated.
Exempt Fund (Documents available upon request)
The Exempt Fund is a fully tax exempt fund that
was created for the sole benefit of the Guardianship
Program of NYSARC, Inc. Gifts or bequests to this
Fund are tax deductible to the donor for income,
gift and/or estate tax purposes to the extent permitted
by law. Please consult your tax advisor for advice
concerning contributions to this Fund. All monies
contributed to this Fund are used to support the
Guardianship Programs, and to meet the expenses
of administering the Funds, which include bookkeeping
and accounting services as well as Trustee expenses.
NYSARC, Inc., through our chapters, initially provided
more than $50,000 for the establishment of this
Fund in order to ensure that no expenses other than
investment expenses of the Unrestricted Fund would
be chargeable against any of the income earned for
the various individual beneficiaries.
Trustees
A board of no more than (9) Trustees (which may
include attorneys, financial planners, parents and
other professionals) is charged with the administration
of the Trust. The Trustees are appointed by the
Executive Committee of the Board of Governors of
NYSARC, Inc. The Trustees carry out the policies
set forth in the trust agreements and work closely
with NYSARC, Inc.’s professional staff as well as
with employees of other agencies operating similar
programs. An annual budget is prepared by the Trustees
and the Funds of The NYSARC Trust are audited annually
by a Certified Public Accountant. In addition, the
Trust, as required by law, files all necessary annual
statements and reports with the relevant federal
and state governmental agencies. While the Trustees
are not guardians, they have a fiduciary duty to
administer the Trust and make disbursement decisions
in the best interest of the Trust beneficiaries.
All decisions made by the Trustees are subject to
the terms of the Trust and are further subject to
any specific terms of a particular gift or bequest
made by the Grantor or included in a Last Will and
Testament giving rise to any bequest. The policy
of the Trustees is to make the wisest possible use
of the funds at their disposal for the benefit of
individuals with intellectual and other developmental disabilities.
The NYSARC, Inc. Community Trusts (Documents available upon request)
In addition to The NYSARC Trust previously referenced
in this document, NYSARC, Inc. offers persons with
disabilities and their families other Trust planning
tools, such as the NYSARC, Inc. Community Trusts.
These Trusts are pooled trusts created and managed
by NYSARC, Inc., which qualify as Supplemental Needs
Trusts for the benefit of people with disabilities,
and which are funded with the personal assets of
the person with disabilities. (They are typically
referred to as a Self-Settled Supplemental Needs
Trusts).
The purpose of a Self-Settled Supplemental Needs
Trust is to permit an individual with disabilities
to protect personal assets while remaining eligible
for governmental assistance programs. Without a
Supplemental Needs Trust an individual with disabilities
could be forced to spend the majority of his/her
assets in order to remain eligible for governmental
assistance. The Community Trusts provide a vehicle
for an individual who receives an outright inheritance,
an award from a lawsuit, or lump sum payment from
Social Security, or income from other sources to
effectively shelter that money, while remaining
fully eligible for governmental benefits.
Where Can I Get More Information About NYSARC Trust Services?
If you or your attorney would like further information
about the NYSARC, Inc. Community Trusts, please
contact the NYSARC Office.
NYSARC, Inc.
393 Delaware Avenue
Delmar, NY 12054
(800) 735-8924
E-mail: trustdept@nysarc.org
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