What Can the Beneficiary of a Pooled Special Needs Trust Use the Assets For?

Special needs girl sits at a desk in a modern office space with crayons, colored pencils, and paper in front of her

A pooled special needs trust is a unique kind of account because it allows you to combine your assets with the assets of others in order to increase the overall investment. Thus, you should be able to enjoy a more substantial reward as a result of your investment.

However, it’s important to note there are strict rules regarding pooled special needs trusts, including:

  • A nonprofit association must establish and maintain the pooled trust.
  • Each individual has their own separate account, referred to as a sub-account, and all assets are combined for investment and management objectives according to the terms of the master trust agreement.
  • The individual sub-accounts may only be utilized for benefitting the disabled individual.
  • The following parties may create a sub-account:
    • The disabled person
    • A parent
    • A grandparent
    • A guardian
    • A court
  • When the disabled person passes away, the trust will pay the remaining balance in the trust to the state, up to an amount that equals the total cost of the medical expenses paid on behalf of the individual under the state’s Medicaid plan.

On top of the strict basic requirements of a pooled special needs trust, there are also specific rules regarding what the assets in the trust may be used for. Read on to learn more.

Allowed Expenditures

The assets in a pooled special needs trust may be used by the beneficiary for the following:

  • Allowance for personal needs.
  • The disabled person’s health insurance premiums.
  • Medical costs that are medically necessary.
  • A maintenance allowance for the family or spouse.
  • Legal and professional costs, including fees for the:
    • Trustee
    • Accounting
    • Guardian
    • Conservator
    • Attorney
  • Prepaid burial expenses.
  • Living expenses for food, clothing, and shelter.
  • Needs related to entertainment, education, or vocation, as well as items that coincide with the individual’s needs.

We Can Help

If you’d like to set up a pooled special needs trust for your loved one, you’ve come to the right place. We are ready and able to help you now.

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

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