How Pooled Trusts Work

What is a Pooled Trust?

A pooled trust, also called a community trust or pooled income trust, is established and managed by a non-profit organization. The trust manages separate accounts for multiple beneficiaries, but pools the funds together for investment and administrative purposes.

Each beneficiary maintains their own sub-account with individual record-keeping, but benefits from the economies of scale and professional management of the larger pooled structure.

How Does It Preserve Benefits?

Government programs like Supplemental Security Income (SSI) and Medicaid have strict asset and income limits. If you exceed these limits, you can lose your benefits.

A pooled trust is not counted as an available resource for SSI or Medicaid eligibility purposes. This means you can have funds in the trust without jeopardizing your benefits, as long as the trust is properly structured and managed according to federal and state regulations.

Who Manages the Money?

Priority Pooled Trusts is the trustee of the pooled trust. We have legal and fiduciary responsibility for managing the funds according to trust terms and applicable law.

As the beneficiary, you work with your assigned account manager to request disbursements for approved expenses. We handle all the administrative details, record-keeping, tax reporting, and compliance requirements.

What Can the Trust Pay For?

Trust funds can be used for a wide variety of expenses that enhance your quality of life, including:

• Medical and dental care not covered by insurance
• Therapy and rehabilitation services
• Education and training programs
• Transportation and vehicle modifications
• Home modifications and accessibility improvements
• Recreation, entertainment, and vacations
• Personal care attendants and caregiving services
• Technology and assistive devices
• Legal and financial planning services

The trust generally cannot pay for food or shelter in ways that would be counted as income for SSI purposes, but there are some exceptions and workarounds we can discuss.

Age Requirements

Under federal law, an individual must be under age 65 when the pooled trust account is established. Once established, you can continue to use the trust after age 65. If you're 65 or older, you may need to consider other special needs trust options.

Medicaid Payback

When a beneficiary passes away, the trust must reimburse the state for any Medicaid benefits paid on behalf of the beneficiary. This is called Medicaid payback. After the state is reimbursed, remaining funds are handled according to the trust agreement terms.