What is the Third-Party Pooled Special Needs Trust?

A third-party trust is a general term for a special needs trust that a parent, family member or others (the “third-party”) establish “for the benefit of” an individual with special needs. Third-party trusts are based on applicable state law (both statutory and common law).  All assets intended for the Beneficiary must be third-party assets, typically belonging to the Grantor, family member, or friend at the time of transfer.  None of the assets may belong to the Beneficiary.

CCT’s Third-Party Pooled Special Needs Trust is a pooled special needs trust administered by CCT, a nonprofit organization. Each Beneficiary’s funds are placed in an individual sub account.  CCT accepts cash assets for deposit into the trust; no real estate or non-cash assets are accepted.  The cash assets from all sub accounts are then “pooled” together, and are invested and managed by the Trust Company of Virginia (TCVA) (www.tcva.com).  TCVA is a federal chartered financial institution with trust powers, located in Virginia.  Pooling the funds reduces administrative fees and increases the principal for investment purposes.  Earnings based on the Beneficiary’s share of the principal are reinvested into each sub account.