Pooled Trust

If you have clients who have loved ones with special needs, you know that protecting their interest is foremost on their mind. Whether it’s a spouse or a child, your clients will want to put measures in place so that all their needs are met. However, it’s not always as simple as drawing up a will. If the loved one with special needs is receiving Medicaid benefits, changes in their income may disqualify them from receiving those benefits. One method to combat this is the use of a pooled trust.

How Do Pooled Trust Work?

A pooled trust is managed by a non-profit organization. The trust pools the funds of all its beneficiaries, however, individual beneficiaries have separate accounts for which they can manage. Pooled trusts are able to utilize funds to make stable investments and often provide management services. Since the funds in the pooled trust are being managed by a non-profit association, not the individual, the beneficiary maintains Medicaid eligibility. A sub-account in a pooled trust can be established by the beneficiary, a parent, grandparent, guardian, or by a court.

Advantages and Disadvantages of Pooled Trusts

Using a pooled trust for maintaining Medicaid eligibility has its advantages and disadvantages, including:

  • Beneficiaries may be any age to be a part of a pooled trust.
  • Funds can be used to pay a variety of expenses, including out of pocket medical expenses, living expenses, or educational expenses.
  • A disadvantage of pooled trusts is that if you are over the age of 65, you may incur a penalty for drawing funds out of the pooled trust.

How Synergy Settlements Can Help You

The welfare of your clients is important as well as protecting yourself from liability involving Medicaid. Let the experts at Synergy Settlements work with your clients to ensure that their ability to receive Medicaid benefits is protected. We understand the nuances of pooled trusts and can make sure that your clients understand their options and can make the best choice.

For more information or to schedule a consultation, please submit our contact request form or call (877) 242-0022.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

TESTIMONIALS

"I just wanted to say thanks to you and the entire Synergy Settlement Services team for helping us put together a series of structured settlements and special needs trusts in two complex cases involving significant recoveries. As always, your accessibility, guidance and expertise on a whole host of post-settlement issues is very much appreciated and valued, particularly with respect to the often confusing topic of Medicare set asides. I look forward to our continued collaboration on cases in the future and am very appreciate of the first rate service your company continues to provide to our clients."

Stephan Le Clainche
Formerly of Babbitt, Johnson, Osborne & Le Clainche

Synergy’s team makes it easy to deal with all of the issues we hate at the end of the case. Dealing with Medicare, ERISA liens, keeping eligibility intact for Medicaid and complicated planning for the client’s recovery. The experts we work with regularly at Synergy do a great job of making sure I am protected as are my clients.

J. Clancey Bounds
Bounds Law Group

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