IMPORTANT: The following information applies only to the First-Party Pooled Special Needs Trust.
For a Beneficiary who never received Medicaid benefits:
Upon the actual death of the Beneficiary, the remaining funds are distributed to the Successor Beneficiary(ies) per the Joinder Agreement after allowable distributions for CCT and TCVA administrative fees are deducted.
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.
Please see Section 8 in the First-Party Pooled Special Needs Trust Joinder Agreement on Distributions Upon the Death of the Beneficiary for further details.
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 vary from 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.
Please see Distributions Upon the Death of the Beneficiary in the First-Party Pooled Special Needs Trust Joinder Agreement for further details.