Pooled Trusts

Pooled Trusts A. A pooled trust is a trust containing the assets of a disabled individual that meets the following conditions: 1. The trust is established and managed by a non-profit entity that has been granted that status by the Internal Revenue Service (IRS); 2. A separate account is maintained for each beneficiary of the trust but for purposes of investment and management of funds the trust pools the funds in these accounts; 3. Accounts in the trust are established solely for the benefit of disabled individuals by the individual, by the parent, grandparent, legal guardian of the individual, or by a court; and 4. To the extent that any amounts remaining in the beneficiary’s account upon the death of the beneficiary or upon the termination of the trust for any other reason are not retained by the trust, the trust pays to the MS Division of Medicaid the amount remaining in the account up to the amount equal to the total amount of medical assistance paid on behalf of the beneficiary. To meet this requirement, the trust must include a provision specifically providing for such payment. B. To qualify as an excepted trust, the trust account must be established for a disabled individual, as defined in Section 1614(a)(3) of the Act. When the individual in question is receiving either Title II or SSI benefits as a disabled individual, the disability determination made for those programs is accepted. If the individual is not receiving SSI or title II benefits based on disability, a determination concerning the individual’s disability must be made. If disability is not established using SSI criteria, the pooled trust exception cannot apply.