What Is A Pooled Trust In Massachusetts

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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. 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. In massachusetts there are several pooled trusts managed by non profit organizations. Although the funds placed in a pooled trust are invested together each beneficiary s account remains his own.

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. A separate account is established for each participant. It is a specific kind of trust available to people meeting disability requirements and is an exception to the medicaid rules discussed above. Established in 1995 the marc trust is the oldest pooled trust in massachusetts.

A special needs pooled trust must be created and overseen by a nonprofit organization. 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. 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.

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. A master trust document allows funds to be set aside for many persons with a disability. The assets in the pooled trust must be used exclusively for the benefit of the beneficiary. The funds income and disbursements from each account are strictly separate.

Page 2 d 4 c pooled trusts attorney john l. 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. A pooled trust would have solved this problem.