What is a pooled trust fund?
According to federal law, a pooled trust fund is a trust administered by a non-profit agency in which separate accounts are established for each member of the trust while the money deposited in the trust is pooled for investment purposes. Special provisions in the law allow money deposited in a pooled trust not to be considered as a countable asset when assessing an individual’s eligibility for Social Security and Medicaid benefits.
How does an individual enroll in the pooled trust fund?
Staff at Community Advocates meets with the individual and family to provide information on the trust. Individuals who meet the eligibility requirements of the trust must be receiving Social Security or Medicaid benefits, and desire to enroll, will be required to complete a Joinder Agreement. Upon completion of this document, a decision is made by staff whether the individual may be enrolled. If accepted, an individual account will be opened into which an initial deposit can be made upon receipt of the enrollment fee.
Are there any limits on how the money in the trust can be used?
Yes, money in the pooled trust can only be used to pay for supplemental expenses over and above those that are covered by the benefits the individual is receiving. Food, housing, and clothing expenses are generally considered to be basic expenses that a beneficiary can only pay for with their Social Security benefits. These expenses cannot be paid for using money from the pooled trust. Medical care or services covered by Medicaid are also considered basic and therefore cannot be paid for by the pooled trust.
What are supplemental expenses?
Supplemental expenses may include paying for items which enhance the quality of a beneficiary’s life such as consumer goods (e.g. TVs, stereos, CDs, or videos), travel expenses, outings, or medical care which Medicaid does not cover (e.g. routine dental care, massage therapy, acupuncture, or experimental treatments).
Does money from the pooled trust get paid directly to the beneficiary?
No. Even though the money held in an individual’s pooled trust account is intended for their benefit, payments for supplemental expenses can only be made to a vendor of the goods or services. This is to keep the money from being considered as income to the beneficiary.
How does a beneficiary receive payment for a good or service through the pooled trust?
Once an individual becomes a member of the trust, they (or their representative) may contact Community Advocates office to request a payment be made for goods or services. A determination will be made whether the request is consistent with Medicaid guidelines. If so, a decision will then be made whether to release the funds. If the request is approved, a check will be made to a third party (a vendor). Checks should be available very quickly after a decision has been reached.
What happens to money remaining in the pooled trust account when the beneficiary dies?
The pooled trust is an irrevocable trust, meaning any money deposited into it cannot be removed by the grantor (the individual providing the money) or the beneficiary. Upon the death of the beneficiary, any remaining assets in the pooled trust will be retained and used to pay for 1) administration of the pooled trust, 2) enrollment of new members in the pooled trust fund and 3) supplemental needs of the remaining beneficiaries in the trust.
How can I find out more about Community Advocates Pooled Trust Fund?
Contact Community Advocates for answers to questions you may have regarding the pooled trust.