Pooled Special Needs Trusts

With special needs planning, the creation of a financial tool called a Special Needs Trust (or Supplemental Needs Trust) can help improve the quality of life and the overall well-being of an individual with special needs while keeping him eligible for public benefits. A Pooled Special Needs Trust is different from a Third-Party Funded Special Needs Trust (TPF-SNT), but similar to a Self-Funded Special Needs Trust (SF-SNT).

What is the benefit of a Pooled Special Needs Trust?

Pooled Trusts, which are also known as (d)(4)(C) Trusts, were created under The Omnibus Budget Reconciliation Act of 1993 (“OBRA 93).  Pooled Trusts pool the resources of all of the trust beneficiaries for investment purposes and are required to be managed by non-profit associations.  Since their inception, Pooled Trusts could be created by the disabled individual unlike Self-Funded Special Needs Trust, which often made them a more attractive alternative when there was no parent or grandparent available to serve as Settlor.  Also, unlike Self-Funded Special Needs Trusts, Pooled Trusts can be funded after the beneficiary attains the age of sixty-five although it may create a transfer penalty for Medicaid eligibility purposes.

Special Needs Planning in Charlotte

The experienced Elder Law and Special Needs Planning attorneys at Weaver, Bennett & Bland can help you with special needs planning and creating pooled special needs trusts. Contact our law office in the Charlotte area at (704) 844-1400 to schedule a consultation.