What is a pooled disability trust?
What is a pooled disability trust?
A pooled trust is a type of special needs trust. Funds set aside in a special needs trust allow the disabled individual to pay for extra care beyond what the government provides. Pooled trusts are a way to provide the benefits of a special needs trust without having to set up and administer a separate trust.
What can my special needs trust pay for without affecting my disability benefits?
An SNT provides for the needs of a person with a disability without losing or reducing their benefits such as Supplemental Security Income (SSI), Medi-Cal, In-Home Support Services (IHSS), and HUD housing assistance.
How does a trust work for a disabled person?
A special needs trust lets parents, other family members and other interested parties contribute funds for the benefit of a disabled person, while also enabling him or her to still receive means-tested benefits such as Medicaid and Security Supplemental Income (SSI).
How does a pooled special needs trust work?
Special needs pooled trusts are run by nonprofit organizations set up to expertly and efficiently administer a master special needs trust on behalf of individual beneficiaries with disabilities. Assets are combined and invested together; funds are spent on beneficiaries in proportion to their share of the total amount.
Who is the trustee of a pooled trust?
A family member or friend of the person with disabilities may serve as the trustee, or a corporate or professional trustee may serve. The d(4)(A) SNT permits the trustee to customize the management and investment of the trust to meet the unique needs of the beneficiary.
Will I lose my disability if I inherit money?
Inheritances are unearned income. As such, any inheritance you receive will not affect SSDI benefits.
Can a trust be a disabled beneficiary?
Leaving money to a disabled person in a will trust Using a will trust can help you to look after a disabled relative in the future so that it does not affect their benefits. If your loved one is vulnerable or lacks capacity, a will trust can also help: protect them from the risk of financial abuse.
How do I set up a disability trust?
To establish a Third Party Special Needs Trust, the family member needs to sign the trust document and then transfer the assets to the Trustee. The trust document is provided by an attorney who provides legal representation and writes all the necessary documents.
What happens to money in a pooled trust?
Although the funds placed in a pooled trust are invested together, each beneficiary’s account remains his own. 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.
