What Are the Requirements of a Pooled Special Needs Trust?

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A pooled special needs trust can be a great tool to help provide disabled individuals and their families with long-lasting security and ongoing support. The main difference about a trust like this is that it is managed by a non-profit organization instead of a single trustee.

Federal law developed and maintains the rules regarding pooled trusts. The law places strict rules on pooled trusts, which means that not just anyone can place assets into these types of accounts.

Below, we’ve outlined the particular requirements that must be met in order to add funding to a pooled special needs trust.

Foundational Requirements of a Pooled Special Needs Trust

If you’d like to place funding into a pooled special needs trust, the following requirements must be met:

  • A nonprofit organization established and maintains the pooled trust.
  • The individual for who the account is created must have a disability or special needs.
  • Every individual has their own separate account, called a sub-account, even though all assets are pooled together in order to be invested and managed according to the terms of a master trust.
  • Only the disabled individual can utilize the assets allocated in their sub-account.
  • Only the following people in relation to the disabled individual may open a sub-account:
    • The disabled individual
    • A parent
    • A grandparent
    • A legal guardian
    • A court
  • When the disabled individual passes away, any funds left in the trust will be paid to the state, up to a particular amount that is equivalent to the total cost of medical expenses paid on behalf of the individual under the state’s Medicaid plan.

We’re Here to Help

If a pooled special needs trust sounds right for your situation, don’t hesitate to reach out to our office right away to learn how we can help. We have assisted many others with their special needs trusts, and we may be able to help you too. Don’t delay—reach out right away with your questions.

Call Legacy Enhancement Trust today at (888) 988-5503 to learn how we may assist you!

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