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©Copyright 2014, Guardian Community Trust, Inc. One Elm Square, Andover MA, 01810 peter@guardiancommunitytrust.org | 978-775-3500
Welcome

THE POOLED TRUST EXPERIENCE

A trust is a relationship created to manage funds. Like any relationship, it takes commitment to maintain a quality experience. GCT aspires to the highest standards in every one of its beneficiary relationships:

Joining
Joining the program is simple. Beneficiaries complete a Sponsor Agreement, usually with the help of qualified legal counsel. If the beneficiary is unable to understand or sign the Sponsor Agreement, a fiduciary (i.e., an agent under a Durable Power of Attorney, or a conservator) may complete it. In rare cases, a court may establish a pooled trust account for an individual.

If the Sponsor Agreement is signed by a fiduciary, GCT will review the documents that give authority to the signer on the same day that documents are received. If there are any problems, GCT offers support to the responsible parties to correct them quickly and efficiently.

Using the Trust Account
Beneficiaries and responsible parties have several ways to request distributions, including telephone, mail, fax and e-mail. GCT provides forms on its website to simplify the process of requesting distributions. GCT also asks responsible parties to provide information about the needs of the beneficiary when an account is opened, so that distributions can be anticipated and budgeted. Forms and direction are provided for this purpose.

Distributions are intended to enhance the independence, comfort and dignity of GCT's beneficiaries. Common expenditures include:

While distributions ultimately are the trustee's decision, GCT depends upon family and other responsible parties to inform its actions as trustee. Factors that GCT considers include

Taxes
Each pooled trust account with GCT is a separate grantor trust for the benefit of the beneficiary. Net income of a grantor trust is taxable to the person who funded the trust, which is the beneficiary. Almost without exception, GCT beneficiaries pay no taxes on such income because they have medical expenses for the year that are far greater than any net income that may be added by the pooled trust account.

GCT completes a tax return at the end of each calendar year for each trust account. Each tax return generates a "Grantor Letter" for the beneficiary, which is submitted with the beneficiary's personal tax return (Form 1040).

Use of Remainders
In addition to pooled trust accounts, GCT manages an endowment, called the Guardianship Endowment, that performs research, education and advocacy toward the creation of a public guardianship agency in Massachusetts. A share of the balance remaining in each pooled trust account at death, ranging from 5% to 15% (averaging 9%), is retained for this Endowment. The Endowment is a growing fund that will pull together many diverse elements of society to address the protective the needs of indigent people on a state-wide basis.

The Guardian Community Trust is guided by a committed Board of Directors who bring diverse professional experience to the task, including credentials in law, trustee services, professional fiduciary services, business administration, nursing home management, and community advocacy.