How Trusts Work

Money In

• Money is deposited into a Special Needs Trust for the benefit of the beneficiary with a disability.

• These funds are now sheltered to protect valuable government benefits.

• Trust money earns investment income in custodial accounts at Charles Schwab, managed by True Link.

• Money is pooled with the funds from all the trusts at JLA. This makes your returns potentially higher than investing on your own, because the cost of managing the investments is shared among JLA’s beneficiaries.

• If you have additional funding sources, more money can be added to the same trust at any time.

Money Out

• JLA Staff works with each beneficiary to develop a personalized spending plan that works for them. The goal is usually to spend about 4-5% of trust assets per year.

• Most beneficiaries receive a monthly sum of disbursed money deposited onto a True Link Prepaid Visa card to pay for things like transportation, clothes, hobbies, and more.

• Certain expenses (like rent or payments to a caregiving agency) will be paid directly from the trust by check without using the True Link card.

• Legally, cash from the trust can never be paid directly to the beneficiary.

• For one-time expenses like computers, vacations, and large medical expenses, contact your JLA customer service rep to get a disbursement outside of your spending plan.

• Depending on the government benefits the beneficiary is receiving and their spending plan, some purchase categories may be blocked on their True Link card.

• All disbursements are overseen by a professional trustee. As part of their fiduciary responsibility to the beneficiary and the trust, there are times when a good trustee will say no to requested disbursements