Pooled Trust — The exception to the rule

Under Federal Law, funds held in standard Trusts can harm your application for public benefits. Any portion of the trust you can “reach” will be counted as an asset, and any interest that could be paid out will be counted as income. The result: You can be disqualified for benefits or have benefits cut off.  If you are applying for public benefits, the application can be denied.

But Federal Law also creates a specific exception to those rules that apply to normal Trusts: Pooled Trusts established to benefit the elderly or people with special needs.  The public benefits recipient/applicant who places assets in such a Pooled Trust is not subject to the above restrictive rules. Pooled Trust assets are not counted as an available resource, and interest on the assets are not counted as income.

This enables participants in the NonProfit Pooled Trust to receive public benefits including Medicaid and Supplemental Security Income to meet their essential needs, such as nursing home residency, and still use their Pooled Trust resources for special or supplemental needs, such as a single-occupany rather than double-occupancy room in the nursing home. The participant has access to the funds throughout their lifetimes to pay for a whole range of extras that Medicaid and SSI will not cover, with payment for those extras made directly by the trust to the provider.

Upon death, money left in participant accounts joins the endowed fund sponsored by their chosen nonprofit. There, residual funds from all participants in a Pooled Trust builds, with proceeds going to services for elderly and disabled persons. See our page, Success Story: The Knights and Ohio Catholic Social Services, for a detailed example of how this wonderful program works.

How to Join

An individual may join the Nonprofit Pooled Trust by executing an Individual Beneficiary Agreement and depositing, with the Pooled Trust, monies that they have earned, inherited, or received via civil litigation.

Likewise, a parent, grandparent, guardian or court may create an Individual Beneficiary Agreement on behalf of a disabled person.

Click on the ENROLL button below to access the Beneficiary Agreement and enrollment instructions. Visit our Contact Us page to arrange an appointment to discuss your needs and Nonprofit Pooled Trust benefits.