Nursing Center Resident Trust Funds
This is a draft cheat sheet. It is a work in progress and is not finished yet.
A resident trust fund is money held by a nursing center for a resident of the center.
Nursing centers cannot require a resident to set up a trust fund.
State and federal laws give individuals the right to manage their finances.
If a nursing center resident needs assistance managing their finances, nursing centers are required to explain all available options, including a trust fund.
Interest Bearing Trust Fund Account
Nursing centers are required to set up an interest bearing account–known as a trust fund --if a resident requests the center manage their funds.
The account must be separate from the center’s own funds.
This applies to any resident funds over $50.
Resident Permission Required
A nursing center cannot use a resident’s money without specific permission.
A resident must give specific per mission for each use of funds from a trust fund account. Residents can appoint a patient representative to help manage personal or financial affairs.
A nursing center must give you access to any or all of your funds within three business days of
your request or if you are discharged.
Centers are required to provide a resident or patient representative with a quarterly accounting
Strict Federal & State Regulations
There are several strict federal and state (varies by state) guidelines on how these trust funds are held, monitored and distributed.
Nursing centers are required to have a surety bond in case something occurs so the resident never has his or her account threatened if monies a re stolen or lost.
The surety bond provides protection to a resident in the case that funds are misused.
The restrictions are numerous and typically very regimented.
Some examples of state regulations include: centers may be audited every year by the state; each center is required to submit monthly activity statements to every resident and/or family.
Resident trust fund accounts are audited by surveyors.
Typically, nursing centers reconcile and self-audit these accounts monthly