TRUST FUND TO HELP PEOPLE WITH DISABILITIES

CAPE GIRARDEAU -- Families and friends of persons with mental or physical disabilities will soon be able to help provide for the special needs of those persons through the Missouri Family Trust Fund.

The program, beginning March 15, will allow families and friends to contribute to the trust fund without endangering the beneficiaries' eligibility for government assistance now or in the future.

John Furla, executive director of the Jefferson City-based trust fund, said the program, set up under a new state law, is just getting started.

Furla, who has been on the job as executive director since September, said he's trying to get the word out.

He spoke to about 35 members of the Cape Girardeau Area Council of Community Agencies at a luncheon Tuesday held at St. Francis Medical Center.

The council comprises representatives of human services agencies throughout a large area of Southeast Missouri, said Shirley Ramsey, information director for the Southeast Missouri Area Agency on Aging and council chairman.

Under the state law, persons with mental illness, physical disabilities, developmental disabilities, or head or spinal cord injuries can be named as beneficiaries of the trust fund. In addition, a separate charitable trust is being set up to accept donations for which no specific beneficiary is named.

"It gives the families peace of mind," said Furla, noting that through the trust fund families can be assured that their disabled relatives will be taken care of.

Federal programs such as Medicaid and Social Security supplemental income provide assistance for basic services: food, shelter and medical care.

But, Furla said, it's friends and families who provide the "extras," such as transportation and additional medical care and equipment.

The trust fund can help provide for such things, he explained. Trust fund money cannot be used, above a very limited amount, for food, clothing and shelter, said Furla.

"We hope that down the line these laws can be revised.

"Donations to the trust fund will be pooled and invested conservatively in such investments as government bonds, money market accounts and growth stocks," said Furla. "By pooling the donations, we can maximize our return."

While donations will be pooled, individual accounts will be maintained, he noted. Each account is insured by the Federal Deposit Insurance Corp. up to $100,000, with further guarantees for amounts over $100,000.

"It is relatively inexpensive to participate in," said Furla. The minimum first-time donation is $500, with a $100 minimum for subsequent donations and a requirement that a $500 minimum balance be maintained.

"The money can be used for extra medical care, rehabilitative services, equipment, repairs and personal items such as a television or stereo, to pay for tickets to a ball game, to pay for hobby supplies, or to pay for transportation to visit or be visited by relatives, just to name a few of the possibilities," said Furla.

How the money is spent is determined by a co-trustee, designated by the family or person establishing the account.

"Often, the family or friends of a person with a disability provide these extras, but the question arises of how they can continue to provide for a person after the family has died. The trust fund," said Furla, "lets them provide for the future."

He said that the amount donated to the trust is not counted as personal income for the beneficiary and is therefore not taken into account when determining the beneficiary's eligibility for government assistance.

About 65,000 Missourians receive some type of government assistance, such as Social Security and Medicaid, Furla said.

"Assistance programs normally require a person to spend most or all of their assets before they can receive assistance. By placing money in the family trust, however, families can make sure funds are available in the future without affecting a person's eligibility," said Furla.

Contributions to the family trust for a specific beneficiary are not tax deductible and they can be withdrawn by the donor at any time, with certain restrictions.

But contributions to the charitable trust are tax deductible, he said.

The trust fund is administered by a nine-member board of trustees, appointed to three-year terms by the governor, with the advice and consent of the state Senate.

Six of the trustees have to be people who have family members with disabilities and the other three must have expertise in general business matters.

Furla said the trustees will decide how the charitable trust money will be distributed.

The Missouri Family Trust Fund has been set up as a self-supporting program and will not be funded by state government, he noted.

Administrative costs of the trust will be paid from interest income and will not exceed 5 percent of that income, a rate comparable to other trust funds, said Furla.

Administrative costs during the start-up period are being paid by a grant from the Missouri Department of Mental Health.

Former Mental Health Commission chairman Gerald Zafft was instrumental in drafting and lobbying for passage of legislation creating the trust fund. Zafft currently serves as chairman of the trust fund's board of trustees.