What is a Pooled Trust?
A pooled trust is an irrevocable supplemental needs trust (SNT) that, under Federal, Massachusetts, and many state statutes, allows people with disabilities and older adults seeking long-term care services to spend down excess funds in order to qualify financially or maintain eligibility for government benefits, such as Medicaid and/or Supplemental Security Income (SSI).
Pooled trusts give people with disabilities a way to access vital health benefits while utilizing the excess funds they deposit into the trust to pay for items and services not covered by those benefits.
In accordance with Federal statute, pooled trust accounts close upon the death of the beneficiary. Any funds that remain in the account must be retained by the trust or paid to the State(s) that provided Medicaid services on behalf of the beneficiary.
Who is eligible for a Pooled Trust?
Massachusetts and New York residents of any age who are disabled as defined by Social Security Law can establish a pooled trust to deposit excess monthly income and/or resources so that those funds are no longer considered when determining a person’s eligibility to receive services through means-tested government benefits.
Benefits of a Pooled Trust
Qualify and maintain eligibility for Medicaid and/or SSI benefits
Protect funds for supplemental needs that enhance the quality of life
Get care in the community and be able to afford to pay bills
Avoid having to spend-down funds quickly
How it Works?
Pooled trusts are established and managed by a not-for-profit organization, such as NYSARC, and a financial institution serves as a co-trustee. Each beneficiary has their own sub-trust account, however, the funds are pooled for investment and management purposes.
The Trustee will administer the account and distribute funds to pay third parties for eligible expenses and purchases that are for the primary benefit of the beneficiary when provided with required documentation. Once the funds are deposited into the trust, the money cannot go back to the beneficiary directly in order to protect their eligibility for benefits.
Trust funds can pay for many things, but not all requests can be paid in order to comply with the policies set by the Social Security Administration’s (SSA) program operations manual system (POMS).
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An Overview Of A Pooled Trust
A pooled trust is a type of irrevocable trust that combines assets from multiple beneficiaries with disabilities for investment purposes. Managed by a nonprofit organization, the pooled trust allows individuals with disabilities to maintain eligibility for government benefits while still accessing funds for supplemental needs. Each beneficiary has a separate account within the trust, and funds are pooled together for investment management purposes, while distributions are made according to each beneficiary’s specific needs. Pooled trusts offer professional management and oversight, providing individuals with disabilities and their families a convenient and reliable option for managing financial resources while preserving eligibility for public benefits.