What Are Pooled Trusts?

A Special Needs trust is a great way to make sure that you will have assets available to care for a loved one with special needs or yourself should you become incapacitated, but remain eligible for public assistance such as Social Security or Medicaid.

Another option is called a Pooled Trust. This type of trust is authorized under federal law and are created by charitable organizations that generally do work with the handicapped and disabled. The charity will act as the trustee and all monies contributed will be pooled to be invested and kept safe. However, each beneficiary is accounted for separately by the trustee. When one of these beneficiaries passes away, the remaining funds are paid to the charity.

Pooled Trusts can be good alternatives because an experienced organization will be acting as trustee and they can execute their fiduciary duties more efficiently per the requests of the special needs person or their family.

For more information about Pooled Trusts in California, please contact a professional Trust Attorney.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.