A supplemental
needs trust (often referred to as a special needs trust or “SNT”) is a special
type of trust specifically authorized by federal and state law to protect
assets of a disabled individual while safeguarding access to benefits programs,
such as Supplemental Security Income and Medicaid.

A
pooled supplemental needs trust is a
kind of SNT that is formed and governed by a not-for-profit organization.  The benefits of using this type of trust
include:

• assets
  can be contributed by the disabled individual or by friends and family members
  

• 
  an
  attorney does not need to draft the trust so legal fees are saved

• the
  not-for-profit manages the trust funds and handles all distributions so if
  there is no one a family can appoint to manage an individual trust, this
  administrative burden is lifted, and the annual summary of expenditures required
  for Medicaid recertification is easily obtained

• 
  many
  not-for-profits offer the ability to shelter excess income through their pooled
  SNTs so an individual can contribute funds to the pooled SNT and still use
  those funds rather than simply spending-down their excess income each month

The
negative aspects of using a pooled supplemental needs trust include:

• remaining
  funds at  the beneficiary’s death usually
  must stay with the not-for-profit for its programs and cannot be distributed to
  family members, friends or other charities
  

• sometimes
  when the pooled account is funded with the special needs individual’s own money
  there may be a Medicaid payback requirement if the not-for-profit does not
  retain the remaining funds

• 
  fees
  can be somewhat high as well, although they are comparable to a corporate trustee,
  usually a percentage of the account value or the monthly income contribution

• 
  pooled
  SNTs cannot be used to shelter assets from Medicaid if the beneficiary enters a
  nursing home for chronic care

I
would be happy to discuss how a pooled SNT or any other type of SNT may fit
within your family’s planning needs.