Why You Should Consider a Pooled Trust

A Pooled Trust can help enable seniors and individuals with disabilities to set aside their own funds to help them gain independence, live comfortably, and have dignity. With our flagship program, Guardian Community Trust, we serve more than 800 beneficiaries in the Commonwealth. There are many benefits to consider when choosing whether or not to have a pooled trust.

What is a Pooled Trust?

A Pooled Trust is a special needs trust (SNT) that is managed by a nonprofit. These organizations combine the funds and resources of each of their beneficiaries; each individual has a sub-account and receives a proportion of the funds. The accounts in a Pooled Trust are administered under a common set of rules while the fund distribution for each beneficiary is determined separately based on individual needs.

These kinds of individuals often require Medicaid or Supplemental Security Income, but certain programs restrict them from having more than $2000 for their assets. To qualify for public benefits, the savings or other assets they own need to be spent unless they are put in a Medicaid-exempt trust like a Pooled Trust.

How to Qualify

Beneficiaries at Guardian Community Trust include seniors living within our community with their families, in their homes, or in a variety of congregate housing. To qualify for a Pooled Trust, these individuals must meet certain requirements.

• Beneficiary must be disabled
• Trust must be for the “sole benefit” of the disabled beneficiary
• Only certain individuals like parents, grandparents, guardians, or the beneficiary individual can establish the trust
• The state Medicaid program must be the primary remainder beneficiary upon the death of the beneficiary
• The trustee must be a non-profit organization

The Benefits of a Pooled Trust

Only Medicaid-exempt Trust Option

Pooled Trusts are useful for individuals who have too many assets to qualify for Medicaid. With these kinds of trusts, you can still qualify for Medicaid-related resources while saving assets for your personal and supplemental needs. This is because the actual beneficiary has no control or power over the trust fund assets; the government will not count the pooled trust as a resource. Pooled Trusts are especially beneficial for individuals who are 65 or older since they are not eligible to establish a first-party supplemental needs trust unless it is specifically a pooled trust.

Managed by Trusted Experts

Managing an SNT can be complex and too much to take on for family members or friends. Individuals managing this trust and these specific assets are often very knowledgeable about agency rules that pertain to income and resources. They will be able to answer questions from Supplemental Security Income or Medicaid programs. These professional management managers will closely follow any changes regarding the laws or financial regulations.

Most Affordable Option

Having a Pooled Trust can be the most cost-efficient option. Since the trusts are supported by non-profit organizations, the administrative services, and management feeds are split among all the pooled trust beneficiaries. This saves more money and time than if an SNT was entrusted by a private financial institution.

Ability to Gain Supplemental Needs

With funds saved in a Pooled Trust, beneficiaries can pay for needs that might not otherwise be covered by governmental insurance. This includes personal needs like recreational and social activities, clothing, home products like a bedside telephone or cable TV, chair cars and other transportation, companionship visits, a denture replacement, social work, and legal expenses.

A Pooled Trust can help individuals gain the resources they need without losing vital benefits like Medicaid. For more information on pooled trusts, visit our website, or call us at 978-775-3500.

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