Pooled Trusts vs. Special Needs Trusts


Pooled trusts can be a good alternative to a special needs trust. However, pooled trusts are not appropriate for everyone. To understand why, let’s take a step back and review some basics.

A pooled trust is a type of special needs trust. Special needs trusts are designed to protect the assets of a physically or mentally disabled person, while still allowing that individual to receive government benefits. To qualify for certain government benefits, such as Medicaid and Supplemental Security Income, an individual generally cannot own more than $2,000 of assets.

A special needs trust enables a physically or mentally disabled person to have an unlimited amount of assets set aside for their needs without being disqualified from government benefits. This is because the assets held in a properly drafted special needs trust are not counted as that individual’s resources for purposes of qualifying for government benefits. Funds set aside in a special needs trust allow the disabled individual to pay for extra care beyond what the government provides.

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Cole Schotz on:

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