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A Pooled Trust is an example of a “first-party” trust in that it can be established by the individual with a disability. The name Pooled Trust is used as the funds deposited are pooled for investment purposes, but are accounted for separately by individual.
Requirements for a Pooled Trust:
1. The trust is established and maintained by a non-profit association.
2. Assets are pooled for investment but accounted for separately.
3. The account is for the benefit of an individual with a disability as defined in 42 USC1382 c(a)(3).
4. The account is established by a parent, grandparent, guardian, court, representative payee or the individual.
5. At the beneficiary's death, to the extent that funds are not retained by the trust, remaining funds are first used to pay back the State or Commonwealth for the Medical Assistance received by the beneficiary.
Other Notes about a Pooled Trust:
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This trust can be self-created and self-funded.
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Funds received by the individual can be transferred to a Pooled Trust and no longer render the individual ineligible.
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For-profit corporate fiduciaries and family members cannot serve as trustees. Only non-profit associations can act as trustees for Pooled Trusts.
This Pooled Trust has pre-approved forms and does not require separate approvals. Due to pooling accounts, the costs are often less than individual trusts.
