Master Trust/“Client Trust”
Legal Fiduciary Obligations
And
Necessary Social Work
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.
Deborah Schroth, 11/6/2008
2
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?
Deborah Schroth, 11/6/2008
3
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.”
Deborah Schroth, 11/6/2008
4
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.
Deborah Schroth, 11/6/2008
5
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 standards
applicable 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
Deborah Schroth, 11/6/2008
6
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?
Deborah Schroth, 11/6/2008
7
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.
Deborah Schroth, 11/6/2008
8
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.
Deborah Schroth, 11/6/2008
9
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?
Deborah Schroth, 11/6/2008
10
“Public Benefits”
Possible public funds:
 Social Security Administration (SSA)





Survivor’s = Death of a parent or guardian
SSDI = Disability of a parent or guardian
SSI = the Child’s own disability
Combination of SSI and either SSDI or Survivor’s
Issue of knowing determinations and possible
appeal of a denial of an SSI application
Deborah Schroth, 11/6/2008
11
Social Security Benefits
SSA administers different benefit
programs:

Insured Benefits



Survivor’s Benefits
Social Security Disability Insurance (SSDI)
Welfare Benefits

Supplemental Security Income (SSI)
Deborah Schroth, 11/6/2008
12
SSA Survivor’s Benefits



These 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
Deborah Schroth, 11/6/2008
13
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.
Deborah Schroth, 11/6/2008
14
SSA Disability Benefits

Disability benefits are paid through two
sources:


SSDI - an insurance program for workers who
have paid into the system, and
SSI – a welfare program for aged, blind or
disabled persons with limited income and assets.
Deborah Schroth, 11/6/2008
15
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.
Deborah Schroth, 11/6/2008
16
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.)
Deborah Schroth, 11/6/2008
17
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.
Deborah Schroth, 11/6/2008
18
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.
Deborah Schroth, 11/6/2008
19
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.
Deborah Schroth, 11/6/2008
20
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.)
Deborah Schroth, 11/6/2008
21
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?
Deborah Schroth, 11/6/2008
22
“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.”
Deborah Schroth, 11/6/2008
23
Other types of income/assets



Private Annuities
Lump sum
Discuss 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.
Deborah Schroth, 11/6/2008
24
Medicaid Issues



Regular (Foster Care): asset restriction
Former Foster Care: no asset or income
restriction
Medicaid Waiver: Various asset and income
restrictions. Check with local ACCESS.



Through SSI
Through two other Medicaid sources
Necessary for APD residential services
Deborah Schroth, 11/6/2008
25
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.?
Deborah Schroth, 11/6/2008
26
Due Process Issues



Fiduciary Obligation vs. Cost of Care
Supreme 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.
Deborah Schroth, 11/6/2008
27
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.
Deborah Schroth, 11/6/2008
28
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.
Deborah Schroth, 11/6/2008
29
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?
Deborah Schroth, 11/6/2008
30
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 Whom






the child,
parents or legal guardians (unless TPR),
guardian ad litem,
Foster parents,
The court, and, if applicable,
the child’s attorney
Deborah Schroth, 11/6/2008
31
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) and
A copy of the most recent quarterly
accounting
Deborah Schroth, 11/6/2008
32
Notice: Form 285D



Case Manager to complete pages 1 and 2
Entire 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
Deborah Schroth, 11/6/2008
33
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.
Deborah Schroth, 11/6/2008
34
Fee Waiver

What this is

This 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 needs
To meet long-term needs.


Special methods necessary if child receives SSI.
The process – in general
Deborah Schroth, 11/6/2008
35
Fee Waiver – Why Request One?

Fiduciary obligation



Current mandated process makes no prior
determination 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.
Deborah Schroth, 11/6/2008
36
Fee Waiver – Why Request One?



Long-term interests of youth likely to age-out
To assist a parenting youth with expenses
related to her child
To procure necessary services not ordinarily
provided



Tutoring – almost always necessary
Mental health care
“Normalcy” activities
Deborah Schroth, 11/6/2008
37
Fee Waiver – Why Request One?

For SSI recipients, to ameliorate the effects
of the child’s disabilities



Adaptive equipment, including special computer
programs and hardware
Special learning tools
Restrictions?

Cannot use the child’s money to pay for items ordinarily
to be paid from another source


Foster Care Board Rate
Medicaid
Deborah Schroth, 11/6/2008
38
Fee Waiver – Why Request One?

To enhance a child’s potential


Extra-curricular academic and sports activities
Artistic activities


Music lessons
Art lessons

To save for the child’s future as an adult

In other words, to use the child’s money to
benefit the child
Deborah Schroth, 11/6/2008
39
Fee Waiver – How to Request One?
The fee waiver request will

be case specific and individualized




One time only or recurring
Why 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 CBC
have documentation that substantiates the request
attached to the request
Deborah Schroth, 11/6/2008
40
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
Deborah Schroth, 11/6/2008
41
Fee Waiver – Who Should Request One?

The child might initiate




By asking caseworker
By asking CLS attorney or child’s own attorney
By asking GAL
GAL or parent might initiate
Deborah Schroth, 11/6/2008
42
Fee Waiver – Who Should Request One?

Court might order case manager to initiate


Court 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.
Deborah Schroth, 11/6/2008
43
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
Deborah Schroth, 11/6/2008
44
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?
Deborah Schroth, 11/6/2008
45
Fee Waiver – Denied!

Each child has the right to appeal the
decision of the region or circuit.



Appeal normally goes to DOAH
Next appeal goes to District Court
Child should have an attorney at this point!
Deborah Schroth, 11/6/2008
46
Account Management



Actual accountings
Notices from SSA or other benefit provider
SSI/Medicaid Interface


$2000 maximum but only for SSI/APD issues
Spending plans

Not spending sprees – when would this happen?

$2000 in account

For all accounts?
Deborah Schroth, 11/6/2008
47
Spending plans




Example (but not the best) at CFOP p. 66
Should be developed using the same
considerations as used for Fee Waiver
request
Should be developed with the child’s input, in
consideration of the child’s wants and needs
Should be submitted to the court as part of
the JRSSR.
Deborah Schroth, 11/6/2008
48
Considerations for expenditures

Prudent Parent standard


For disabled children





Not spending just to spend
Services tailored to ameliorate effects of disability
Do not pay for something Medicaid must provide
But do supplement Medicaid
Discuss examples of disabilities and services
Allowances/self-management
Deborah Schroth, 11/6/2008
49
Special Considerations for Youth
Transitioning from Foster Care

Preparation for aging out – long-term needs



Bank account establishment


At what age: 65C-17.004 says 15
Why? RTI and Transitional services are not
entitlements
“Automatic” Court order at age 16
Fee Waiver Considerations

For youth with SSI, how to layer expenditures
Deborah Schroth, 11/6/2008
50
Special Considerations: Conserved Funds
upon age 18
State v. Federal conflict


We’re working on this
Follow the protocol in the Master Trust checklist
Court order sought directing disbursement
Issue of “overpayments”
 Who bears the risk of loss of the overpayment?




Should be DCF – but is child when $ returned to SSA
If not determined, or fully recouped, until youth ages out,
the youth bears this risk.
Issue of overpayment waivers
Deborah Schroth, 11/6/2008
51
Special Considerations: Conserved Funds
when child exits care as a child

Funds to be returned to SSA


They determine new Rep Payee
But – problem

SSA 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.
Deborah Schroth, 11/6/2008
52
Special Considerations for Youth
Transitioning from Foster Care

PASS Accounts



Only the basics today
Will be subject of a future training
APD

Special Needs Pooled Trust
Deborah Schroth, 11/6/2008
53
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
Deborah Schroth, 11/6/2008
54
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?
Deborah Schroth, 11/6/2008
55
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?
Deborah Schroth, 11/6/2008
56
Putting Knowledge into Practice:
Who is Responsible to Do What?

Fiscal Office




Establish the account
Manage the banking for the accounts
Provide case managers with accountings
Disburses funds and monitors receipts for
expenditures
Deborah Schroth, 11/6/2008
57
Putting Knowledge into Practice:
Who is Responsible to Do What?

Caseworker






Tracks account balance for maximums, etc.
Monitors short and long-term needs of child
Keeps child informed of purchases
Provides notice to court, others if any purchase
greater than $ 500
Ensures quarterly accountings are included in
JRSSR
Completes paperwork for distribution upon child’s
discharge from foster care.
Deborah Schroth, 11/6/2008
58
Putting Knowledge into Practice:
Who is Responsible to Do What?

CLS




Regs 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.
Deborah Schroth, 11/6/2008
59
Putting Knowledge into Practice:
Who is Responsible to Do What?


CLS, continued
Currently Master Trust has problems





Accounts at/over SSI asset max, with payments
suspended.
Medicaid impact
Inadequate consideration of children’s needs
Failure to provide proper notice
How to resolve?
Deborah Schroth, 11/6/2008
60
Note:

Dollar amounts were correct effective April 8,
2009.

Feel free to contact with any questions:



Deborah A. Schroth
850-524-5815
Deborah_schroth@dcf.state.fl.us
Deborah Schroth, 11/6/2008
61
Consider Antoine
Antoine 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 procee
f care is $850 monthly, and he has only been accumulating $30 per month in his master trus
before 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?
Deborah Schroth, 11/6/2008
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