The Grantor can designate Primary and Contingent Successor Beneficiary(ies) in the Joinder Agreement. The Grantor can designate one person, several people or a nonprofit organization like CCT to receive some or all of the remainder funds. This information can be updated by the Grantor(s) at any time by completing the Amendment to the First-Party Pooled Special Needs Trust Joinder Agreement form.
For a Beneficiary who never received Medicaid benefits:
After administrative fees are deducted, the remaining funds are distributed to the Successor Beneficiary(ies) per the Joinder Agreement.
For a Beneficiary who received Medicaid benefits:
The First-Party Pooled Special Needs Trust is a Medicaid payback trust for Beneficiaries who receive Medicaid. Upon the actual death of the Beneficiary, there are specific rules for what happens to the remainder. These rules may vary state-to-state.
In general, the Medicaid office for each state in which the Beneficiary received Medicaid benefits is notified upon the death of the Beneficiary. CCT requests information regarding the total amount of claims (funds that Medicaid has spent) that is owed to Medicaid on behalf of the Beneficiary.
The following scenarios help to explain CCT’s policy for the remainder of the First-Party Pooled Special Needs Trust upon the death of the Beneficiary. CCT’s policy is followed to the extent that it complies with each state’s Medicaid Policy:
- When Medicaid is owed less than the amount remaining in the trust:
If there is $50,000 remaining in the trust and Medicaid is owed $25,000, the Successor Beneficiary(ies) per the Joinder Agreement will receive the balance after Medicaid is reimbursed and administrative fees are deducted.
- When Medicaid is owed more than the amount remaining in the trust:
If there is $50,000 remaining and Medicaid is owed $60,000, the remainder will be retained by CCT to support the mission of CCT, which includes the Charitable Fund Award.
IMPORTANT! Pre-need funeral and burial arrangements for the Beneficiary should be made and paid for in advance, as disbursements will not be approved after the Beneficiary has passed away.
It is also important that CCT is notified by the Grantor or Advocate at the time of death of the Beneficiary. We are not notified by any other agency. A copy of the death certificate is requested when it becomes available.
See the Joinder Agreement section on Distributions upon the death of the Beneficiary for further details.