Master Trust/“Client Trust”

Master Trust/“Client Trust”

Legal Fiduciary ObligationsAnd

Necessary Social Work

Deborah Schroth, 11/6/2008 2

FIRST RULE OF MASTER TRUST

Who’s money is this?

The money in Master Trust is the child’s money!

It is not “our” money.


Antoine –

see facts from final slide.

Fee Waiver? Why or why not?If yes, what are the considerations?

Age?Likelihood to age out?Needs?

Life Insurance from the VA?How much can Antoine accumulate in his client trust account?

Why do you give this answer?


What is Master Trust

Master Trust 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-accounts within it each child has his or her own separate accounting

The individual “accounts” within the Master Trust are also called the “client trust accounts.”


Do all Children in Foster Care have Master Trust

No, only children who receive some sort of unearned income, or assets, will have a Client Trust Account created pursuant to the Master Trust agreement.Examples include children receiving monthly benefits from the Social Security Administration (the majority) or an annuity, or children who have received a one-time payment, such as a court judgment.


Legislative Purpose & Fiduciary Duty

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 standardsapplicable 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


Who Administers this

Administration varies by CBC.In some areas, this is administered by local DCF Fiscal office, e.g., all NE Region except for Gainesville, which is administered by Partnership for Strong Families.In other areas, this is administered by the CBC, e.g., Big Bend Community Based Care handles the trust fund in much of the NW Region. Do you know who to contact?


Who Administers this

What to do?If you don’t know, contact your local DCF Fiscal office to find out who administers Master Trust for your kids, and secure contact information.Make contact with the Fiscal Agent to find out exactly how the administrator handles the different issues raised in this presentation.


Does each child have a separate bank account?No, just separate accounting.

DCF maintains one account for all its foster children within each district/region.If CBC administration, one account for each CBC. There are no individual bank accounts . . .

For large sums, should request permission for a separate investment from the court.


Source of Funds –

Necessary Info

It is necessary to know the basics about the child’s income stream in order to know how to correctly administer the child’s trust account.

Initial questions:Was there a one-time payment, or are there recurring payments?What is the source of the payment?

Government benefits? These will usually be recurring.Life insurance proceeds?Annuities – annual or monthly?Court judgment or settlement award?


“Public Benefits”

Possible public funds:Social Security Administration (SSA)

Survivor’s = Death of a parent or guardianSSDI = Disability of a parent or guardianSSI = the Child’s own disabilityCombination of SSI and either SSDI or Survivor’s

Issue of knowing determinations and possible appeal of a denial of an SSI application


Social Security Benefits

SSA administers different benefit programs:

Insured BenefitsSurvivor’s BenefitsSocial Security Disability Insurance (SSDI)

Welfare BenefitsSupplemental Security Income (SSI)


SSA Survivor’s BenefitsThese are benefits that are paid out to surviving family members of a deceased insured worker.Unmarried children who are younger than age 18 (or up to age 19 if they are attending elementary or secondary school full time) also can receive benefits. Additionally, children can receive these benefits at any age if they were disabled before age 22 and remain disabled – therefore, need to consider applying to SSA for “Disabled Adult Child’s”benefits before aging out of care.Even after TPR or a subsequent adoption, the child still can receive benefits


SSA Survivor’s Benefits

The benefit amount is based on the earnings of the person who died. The more the worker paid into Social Security, the greater the child’s benefits will be.This money will accumulate in the child’s Master Trust, with funds spent as appropriate. The SSA places no limit on how much money the child can accumulate from this benefit.


SSA Disability Benefits

Disability benefits are paid through two sources:

SSDI - an insurance program for workers who have paid into the system, andSSI – a welfare program for aged, blind or disabled persons with limited income and assets.


SSDI –

Insurance Benefit

Children may receive SSDI benefits when an insured parent or guardian is disabled and receives SSDI herself.The amount of the benefit depends on the parent’s length of covered employment and total number of beneficiaries.Again, no limit to amount child may accumulate in the master trust account.


SSI: Supplemental Security Income

SSI is a welfare program for persons who are aged, blind or disabled. Children may participate in this program.As a welfare program, there are maximum income and asset limitations. What is the asset limit? There must be more careful oversight of children in care receiving SSI, to ensure that no “overpayment”occurs.Benefit amount is uniform: $ 674 in 2009. (If a combo of SSI and other SSA, amount is $ 694.)


SSI: Supplemental Security Income

SSA often takes a long time to agree that someone is disabled; most likely will need to use an attorney to appeal an initial denial. When approved, applicant is entitled to “retroactive” benefits, i.e., benefits dated back to the date of application and/or onset of disability, whichever last occurs.If lump sum benefit is for more than six months of payments, must open a “dedicated account” for those payments.


SSI: Dedicated Lump Sum Accounts

These funds may only be used for specific types of expenses, and may not be used for “basic monthly maintenance,” such as food, clothing or shelter. This means that the dept./CBC cannot deduct the “cost of care”for the months this money represents.This must be a separate account, and no other funds can be mingled in the account.


Uses of Dedicated Funds

You can use the money only for the following expenses:

medical treatment; and education or job skills training.

The following expenses are also allowed, if they benefit the child and are related to the child's impairment:

personal needs or assistance (e.g., in–home nursing care) special equipment; housing modification; therapy or rehabilitation; or other items or services approved by your local Social Security office.


SSI Overpayment

SSI is a welfare-type payment, designed to provide for the ordinary needs of day to day existence; there are certain instances when SSI will not be payable. Examples:

Child will be in a hospital or correctional facility or a runaway for more than 30 consecutive days. (Why is this?);Child is able to save the money; asset limit is $2000, with certain things not counted, such as a car. (Why is this?)Monthly income exceeds a specific limit. (Student rules.)


SSI Overpayment

First, SSA stops payments.If situation changes before 9 months, child’s benefits will be reinstated, if requested.

SSA asks for its money to be returned if any monthly payments during period of ineligibility.Will discuss later: should the child be responsible to repay this money?


“Public Benefits”: How the money is paid

Disabilities of non-age; SSA won’t pay the funds directly to a child.SSA selects a “representative payee.”

State regs say DCF should always apply for this;Federal regs say the State is the payee of last resort.

“Rep Payee” is the person designated to receive, spend and save the child’s funds.SSA has numerous rules for “Rep Payees.”


Other types of income/assets

Private AnnuitiesLump sumDiscuss when income/assets should not be in Master Trust.

Inadequate understanding of asset management or lack of time to do so.Benefits too great: CFOP indicates “large sums”as being $20,000.Need better investment than minimal interest rate.


Medicaid Issues

Regular (Foster Care): asset restrictionFormer Foster Care: no asset or income restrictionMedicaid Waiver: Various asset and income restrictions. Check with local ACCESS.

Through SSIThrough two other Medicaid sourcesNecessary for APD residential services


Medicaid Issues

Current issue: failure of understanding of interaction of Medicaid Waiver and either foster care or former foster care Medicaid.

Ex: Master Trust account exceeds $2000. Who pays for APD services? Who pays for medications, doctor visits, etc.?


Due Process Issues

Fiduciary Obligation vs. Cost of CareSupreme Court re SSI – OK for states to pay themselves cost of care from normally restricted SSI payments. (Case did not address issue of fiduciary obligations.)Constitutional Issue

Notice required prior to alienation of property.


Cost of Care Deduction

Also called “fee maintenance”, this is the monthly cost to DCF of caring for the child, i.e., monthly board rate.Statute requires DCF to balance its own fiscal needs to take this fee against the child’s immediate and long-term needs.To fulfill its fiduciary duty, DCF must offer a possible waiver of this cost of care deduction.


Cost of Care Examples

Daryl receives $ 674 per month in SSI benefits. His monthly cost of foster care is $ 675. Because the Social Security Administration requires that insitutionalized SSI recipients receive a monthly personal allowance of $ 30, Daryl is only accruing $30 monthly in his master trust account, and this only due to SSA regulations.Angela receives $ 850 per month in SSDI benefits, due to the death of her father. Her monthly cost of foster care is also $ 650. Therefore, she accrues $ 200 monthly in her master trust account.Benjamin receives $ 674 per month in SSI benefits, but his monthly cost of foster care is only $ 475 monthly. Therefore, Benjamin accrues $ 199 monthly.


Cost of Care Examples

Carmen receives SSDI Benefits of $350 monthly. Carmen is also disabled. Her cost of care is $1800 monthly. She is 15.

What does she accrue, if anything in her account?What else should happen here?


Notice –

of Master Trust and Right to Request a Waiver of Cost of Care Fee

When MT is established: within 30 days (Form CF FSP 5222) (CFOP II-11, at p. 14)) – and -Each JR (Form 285D)

To Whomthe child, parents or legal guardians (unless TPR),guardian ad litem,Foster parents,The court, and, if applicable, the child’s attorney


Notice –

at each JR

Must include a copy of the Notice of Fee Assessment And Rights Of Foster Child Regarding Government Benefits (Note: the form applies to client trust regardless of source of income - misnamed) andA copy of the most recent quarterly accounting


Notice: Form 285D

Case Manager to complete pages 1 and 2Entire form (which includes the request for fee waiver) to be attached to JRSSR and delivered to required persons.What

Go through an actual form (11 – 14): Form DCF Form CF 258D, Jan. 1998. Notice of Fee Assessment and Rights of Foster Child Must do this correctly to be meaningful

“meaningful” – a Constitutional due process requirement


Access to Accounting

All persons entitled to notice also have the right to access the full accounting at any time.Fiscal office must provide an annual accounting. CFOP Part I, Section (8)j.


Fee Waiver

What this isThis is a request by or on behalf of a child to “keep” more of her income for a specific purpose.

Increased monthly spending allowance;For additional short-term needsTo meet long-term needs.

Special methods necessary if child receives SSI.

The process – in general


Fee Waiver –

Why Request One?

Fiduciary obligationCurrent mandated process makes no priordetermination before deducting total cost of care as to whether this should or should not be done as to any particular child/youth. To balance short-term and long-term interests of each child with the interests of the Department.

What happens if the required notices were never given? Discussion.


Fee Waiver –

Why Request One?

Long-term interests of youth likely to age-outTo assist a parenting youth with expenses related to her childTo procure necessary services not ordinarily provided

Tutoring – almost always necessaryMental health care“Normalcy” activities


Fee Waiver –

Why Request One?

For SSI recipients, to ameliorate the effects of the child’s disabilities

Adaptive equipment, including special computer programs and hardwareSpecial learning toolsRestrictions?

Cannot use the child’s money to pay for items ordinarily to be paid from another source

Foster Care Board RateMedicaid


Fee Waiver –

Why Request One?

To enhance a child’s potentialExtra-curricular academic and sports activitiesArtistic activities

Music lessonsArt lessons

To save for the child’s future as an adult

In other words, to use the child’s money to benefit the child


Fee Waiver –

How to Request One?

The fee waiver request willbe case specific and individualized

One time only or recurringWhy is this necessary?

submitted through a fully completed “Notice of Fee Assessment and Rights of Foster Child Regarding Government Benefits” form (CF 0285D) to the Region, Circuit or CBChave documentation that substantiates the request attached to the request


Fee Waiver –

Standards for Review

Age of the client. (Looking towards needs of older youth both short-term and looking towards adulthood).Health status and needs of client.Case goal.

If not adoption/reunification, “quality of life considerations become more critical.”

Individual concerns; documentation


Fee Waiver –

Who Should Request One?

The child might initiateBy asking caseworkerBy asking CLS attorney or child’s own attorneyBy asking GAL

GAL or parent might initiate


Fee Waiver –

Who Should Request One?

Court might order case manager to initiateCourt sees unmet needs of the child, and understands Master Trust enough to know that there is money that could be accessed to help the child.Court may order someone to make a fee waiver request, but court has no subject matter jurisdiction to entertain such a request, or to order a fee waiver.


Fee Waiver procedure

Rule 65C-17.005, F.A.C.Local review committee (at least 3 people) 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.requires an actual meeting of the committee;

meeting is open to the person requesting the waiver and his representative, who does not need to be an attorney

audio-taping of the meeting


Fee Waiver procedure, cont’d

Rule 65-6.022, F.A.C.Requires the fee review committee’s recommendation to the District Administrator to be made within 30 days of receipt of the request for fee waiver;Requires the District Administrator to notify the person requesting the fee waiver within 10 days of making the decision.

Question: Are we involved at this point?


Fee Waiver –

Denied!

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

Appeal normally goes to DOAHNext appeal goes to District Court

Child should have an attorney at this point!


Account Management

Actual accountingsNotices from SSA or other benefit providerSSI/Medicaid Interface

$2000 maximum but only for SSI/APD issuesSpending plans

Not spending sprees – when would this happen?$2000 in account

For all accounts?


Spending plans

Example (but not the best) at CFOP p. 66Should be developed using the same considerations as used for Fee Waiver requestShould be developed with the child’s input, in consideration of the child’s wants and needsShould be submitted to the court as part of the JRSSR.


Considerations for expenditures

Prudent Parent standardNot spending just to spend

For disabled childrenServices tailored to ameliorate effects of disabilityDo not pay for something Medicaid must provideBut do supplement MedicaidDiscuss examples of disabilities and services

Allowances/self-management


Special Considerations for Youth Transitioning from Foster Care

Preparation for aging out – long-term needsAt what age: 65C-17.004 says 15Why? RTI and Transitional services are not entitlements

Bank account establishment“Automatic” Court order at age 16

Fee Waiver ConsiderationsFor youth with SSI, how to layer expenditures


Special Considerations: Conserved Funds upon age 18State v. Federal conflict

We’re working on thisFollow the protocol in the Master Trust checklist

Court order sought directing disbursementIssue of “overpayments”

Who bears the risk of loss of the overpayment?Should be DCF – but is child when $ returned to SSAIf not determined, or fully recouped, until youth ages out, the youth bears this risk.Issue of overpayment waivers


Special Considerations: Conserved Funds when child exits care as a child

Funds to be returned to SSAThey determine new Rep Payee

But – problemSSA takes sometimes months

To establish new Rep Payee, so caregiver goes months without payments;To return conserved funds.

So? Need to follow-up with SSA to ensure timeliness.


Special Considerations for Youth Transitioning from Foster Care

PASS AccountsOnly the basics todayWill be subject of a future training

APDSpecial Needs Pooled Trust


Authorities for Presentation

Sections 402.17, 402.33 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


Putting Knowledge into Practice:

Abby is 11, she is very intelligent, but hadn’t done well in school for the last few years. Abby’s father died in Iraq when she was 9. Ten months ago Abby’s mother was hospitalized under Baker Act proceedings and has remained hospitalized. Abby was placed into a shelter and is now in a foster home. Abby is entitled to a military death benefit. Her mother was receiving the benefit before Abby was taken into care. Mom now isn’t receiving the benefit for Abby.Who will get her benefits reinstated?Is there a restriction on how much she can accrue?What should be in her spending plan?


Putting Knowledge into Practice:

Rashid is 17 and has been in foster care for 3 years. His caseworker applied for SSI benefits for him because he has a low IQ and serious health issues, including asthma. His application was finally approved just last month, and he received retroactive benefits of $9,000.Can his cost of care be deducted from this amount?What should be done with the $9000?


Putting Knowledge into Practice: Who is Responsible to Do What?

Fiscal OfficeEstablish the accountManage the banking for the accountsProvide case managers with accountingsDisburses funds and monitors receipts for expenditures



CaseworkerTracks account balance for maximums, etc.Monitors short and long-term needs of childKeeps child informed of purchasesProvides notice to court, others if any purchase greater than $ 500Ensures quarterly accountings are included in JRSSRCompletes paperwork for distribution upon child’s discharge from foster care.



CLSRegs don’t provide us with much guidance.Question: who provides the Notices to the child, court, etc? Not specified in law.Regs do require us to ensure quarterly accountings are in court files.Ensure the proper motions are filed with court requesting order for discharge

Ensure AHCA is notified.



CLS, continuedCurrently Master Trust has problems

Accounts at/over SSI asset max, with payments suspended.Medicaid impactInadequate consideration of children’s needsFailure to provide proper notice

How to resolve?


Note:

Dollar amounts were correct effective April 8, 2009.

Feel free to contact with any questions:Deborah A. [email protected]


Consider AntoineAntoine came into foster care a little over two years ago. He lives in a group home.Antoine’s mother died while serving in the U.S. Army. Antoine was an only child.

He will be 17 in January. Although he’s still in the 9th grade, his IQ is average.

Before coming into care, his grades were good: mostly B’s, a few C’s.ntoine excels in his jazz band class, but he hasn’t been allowed to travel to band competition

You seem to recall hearing that college scouts attend these competitions.Antoine seems to eat, think and talk music. He’s mentioned Julliard a few times.

Antoine has no other family suitable to care for him. He has one uncle in Georgia, but Antoine doesn’t like him.

His case plan goal is IL.oine receives $ 780 monthly in VA benefits; no one has looked into any life insurance procef care is $850 monthly, and he has only been accumulating $30 per month in his master trusbefore you for a Judicial Review hearing. You look through the JRSSR and don’t see any a

and there is no notice of his right to request a fee waiver.What questions do you ask Antoine?

What questions do you ask the case manager?What do you order the case manager to do after today’s hearing?

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Master Trust/“Client Trust”

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