What Is A Pooled Trust In Massachusetts

A pooled trust is a special type of trust that allows individuals to become financially eligible for public assistance benefits while preserving their resources in trust for supplemental needs.

What is a pooled trust in massachusetts.

Depending on the trust a beneficiary might work with a social worker or other trust advisor to tailor a funds distribution plan that fits his lifestyle. A master trust document allows funds to be set aside for many persons with a disability. While not necessary for everyone the end result of joining a pooled trust is that trust beneficiaries can receive the public benefits that meet their. Although the funds placed in a pooled trust are invested together each beneficiary s account remains his own.

A separate account is established for each participant. Assets transferred into a pooled trust do not incur a penalty period and the amount held within the trust is not considered a countable asset. The assets in the pooled trust must be used exclusively for the benefit of the beneficiary. A pooled trust would have solved this problem.

For this reason pooled charitable trusts are a common means of preserving assets so they remain available to improve the quality of life of a masshealth recipient. The overall goal of a pooled trust is to provide financial security to all people with disabilities and a higher quality of life. A pooled trust is a trust established and administered by a non profit organization. Page 2 d 4 c pooled trusts attorney john l.

A special needs pooled trust must be created and overseen by a nonprofit organization. 92 2013 explains the concept of decanting trusts the sole and disinterested trustee of an irrevocable trust could distribute the trust property in further trust for the benefit of the beneficiaries without their consent or approval and without the consent or approval of a court where the trust s broad grant of almost unlimited discretion evidenced the settlor s. It is a specific kind of trust available to people meeting disability requirements and is an exception to the medicaid rules discussed above. This is a self settled or d 4 c trust funded with assets belonging to the individual with a disability assets often obtained through an inheritance.

A separate account is established for each beneficiary of the trust but for the purposes of investment and management of funds the trust pools these accounts. Established in 1995 the marc trust is the oldest pooled trust in massachusetts. The funds income and disbursements from each account are strictly separate.