Pooled Trusts in Elder Law and Estate Planning: Requirements, Funding Options, SNTs vs. PSNTs, Beneficiaries

The use of trusts for special needs and disabled clients is an integral part of an elder law and estate planning practice. Under certain circumstances, using a pooled trust for Medicaid or estate planning can provide significant benefits. To handle these trusts properly for clients, counsel must know when these trusts are appropriate, first-and third-party special needs trusts to protect public benefits for clients, and how to administer these trusts.

A nonprofit organization establishes and administers the pooled trust, setting up a separate account for each beneficiary. Funds from all accounts within the trust are pooled for managing investments and efficient administration. A person with a disability or a parent can establish subaccounts funded with the assets of the beneficiary.

Family members who want to leave inheritances to persons with disabilities can establish third-party pooled-trust subaccounts. Under these circumstances, Medicaid payback rules don't apply since the assets of the disabled or special needs person didn't fund the account.

Counsel must understand the tax consequences and pitfalls to avoid when utilizing pooled trusts in estate planning and the potential impact on a client's public benefits.

Listen as our panel discusses critical points for elder law counsel and estate planners to understand and weigh when utilizing pooled trusts. The panel will also discuss the mechanics of pooled trusts, requirements, administration, funding options, and other vital items to consider for special needs, low-income, elderly, or disabled clients.