Financial Trust

Financial Trust

Is a Disability Benefits Trust for you?

• Are you a person who has 'Person with Disability' (PWD) status?
• Are you receiving a large lump sum payment (Canadian Pension Plan retro, inheritance, insurance settlement) which may disqualify you from receiving your PWD benefits?

If you answered "yes" to both of the above questions, you may find that setting up a disability benefits trust is a useful vehicle for optimizing the benefits of your income.

There are two types of trust agreements: Discretionary and Non-Discretionary, which one you need depends on your situation.

Coast Financial Trust Program Restrictions

Coast's Program is generally for mental health consumers.

Ministry of Housing and Social Development has no Trust provision for people with PPMB status. (Persons with Persistent and Multiple Barriers)

How can a Trust help?

A trust is where someone (the "trustee") is holding money or other assets for someone else (the "beneficiary"). The money or assets are held "in trust" for the beneficiary.

Coast offers a structure designed to help mental health consumers maximize the benefit from a lump sum payment without affecting their eligibility for PWD.

For example: This does not represent an actual person or a factual situation.

"Deanne" receives an inheritance of $15,000. This normally would cause her to become ineligible for PWD since she has too much cash (the limit is $3,000). "Deanne" puts the cash in a special trust, naming herself as the "beneficiary" for her future needs.

"Deanne" will continue to receive her PWD payments and she can draw from the trust account for as long as she uses it according to the Government disbursement rules. 

Eligible Uses of Trust Funds

Trust monies can be used for "Disability-related costs" without affecting a person's eligibility for Disability Benefits.

Government Disbursement Rules:

1. devices, or medical aides, related to your health or well being;
2. caregiver services or other services related to the Beneficiary's disability;
3. education or training;
4. necessary maintenance for the Beneficiary's principal residence;
5. any other item or service necessary to promote the Beneficiary's independence. This item has a spending limit of up to $5,484 per year.

Where is the Money Kept?

Coast currently keeps the funds in a special trust account with Van City Credit Union. Most funds are kept in separate trust accounts. All income and expenses of the trust are separately accounted for and can be audited by the Ministry of Housing and Social Development.

How Do I Establish a Trust?

1. Determine if you are eligible.
2. Obtain a copy of the Coast Trust Manual.  This is available on Coast website. www.coastmentalhealth.com
3. Obtain copy of a booklet “Disability Assistance and Trust from he Ministry of Housing and Social Development.
4. Review the materials
5. Seek independent legal counsel. Coast can suggest some lawyers who may be of assistance.
6. If you don't need or want legal counsel, you should utilize the services of an advocate, it is important that you understand the implications and issues involved with a Trust.
7. If you wish to proceed call (604) 872-3502 to arrange a meeting with a Trust Coordinator.
8. The signing of the Trust agreement and deposit of the funds initiates the Trust arrangement.

What Are the Costs?

Coast currently charges:

• one time setup fee;
• annual fee;
• closing fees
• unexpected administration fees.

Click here for a PDF copy of the Trust Program Brochure >