Define: Pooled Trust

A pooled trust is a type of trust that allows individuals with disabilities to place their assets into a collective fund managed by a nonprofit organisation. The funds are then used to provide for the individual’s supplemental needs while still maintaining eligibility for government benefits.

When an individual with a disability establishes a pooled trust, they transfer their assets into the trust, which is managed by a trustee appointed by the nonprofit organisation. The trustee then uses the funds to provide for the individual’s supplemental needs, such as medical expenses, housing, and education, while ensuring that the individual remains eligible for government benefits.

One of the main benefits of a pooled trust is that it allows individuals with disabilities to preserve their eligibility for government benefits, such as Medicaid and Supplemental Security Income (SSI), while still being able to use their assets for supplemental needs. Additionally, the pooled trust provides professional management of the funds and ensures that they are used appropriately.

Any individual with a disability, regardless of age, can establish a pooled trust. However, it is important to consult with an attorney or financial advisor experienced in special needs planning to determine if a pooled trust is the right option for your specific circumstances.

No, the funds from a pooled trust can only be used for the supplemental needs of the individual with a disability. These needs typically include medical expenses, housing, education, transportation, and other similar expenses.

Yes, family members, friends, or even the individual with a disability themselves can contribute funds to a pooled trust. These contributions can be made during the individual’s lifetime or through a bequest in their will.

There are no specific restrictions on the amount of assets that can be placed in a pooled trust. However, it is important to consider the impact on eligibility for government benefits, as certain programs have asset limits.

In most cases, a pooled trust cannot be revoked or amended once it is established. However, it is important to review the specific terms of the trust agreement and consult with an attorney to understand any provisions for revocation or amendment.

Upon the death of the individual with a disability, any remaining funds in the pooled trust are typically used to reimburse the state for Medicaid benefits received by the individual during their lifetime. After reimbursement, any remaining funds may be distributed to the nonprofit organisation managing the trust or to other charitable purposes.

To find a reputable nonprofit organisation that offers pooled trust services, you can consult with an attorney specializing in special needs planning, contact local disability advocacy groups, or search online for organisations that provide pooled trust services in your area. It is important to research and choose an organisation with a good track record and experience in managing pooled trusts.