By Joanne Marucs, MSW, President/CEO
1 in 5 adults have a mental illness and nearly 1 in 25 adults have a serious mental illness. When an illness impacts the individual’s ability to work or manage their finances, a plan is necessary to ensure careful management of funds. There are multiple options for future financial planning for loved ones with mental illness, but one such option is a Pooled Special Needs Trust (PSNT).
This article provides information about PSNTs, the benefits of using a PSNT, what can be paid for by the trust, and the steps to establish one.
A PSNT is administered by a nonprofit organization that manages and invests funds for people with disabilities. The funds are used to enrich the quality of life of the beneficiary and to protect government benefits, such as Supplemental Security Income (SSI) and Medicaid. The funds are pooled together for investment purposes, which reduces administrative fees and provides an opportunity for growth.
There are two types of trusts:
For families that are setting up a third-party PSNT and planning for the future, it is helpful to ask the following questions:
Disbursements are not permitted for food or shelter if the beneficiary receives SSI but can pay for expenses that enrich the quality of life of the beneficiary.
Examples include:
With its many benefits, a PSNT can be a convenient and cost-effective option for those living with mental illness.
"CCT has been a blessing to our family. CCT has provided a sense of order, organization, trust, and leadership in helping to provide and protect the well-being of my younger sister. I would recommend CCT to anyone, and I already have." — Dan, Brother and Advocate of a CCT Beneficiary
"I have had nothing but exceptional service from this company, they take their time to help with my needs and make sure I have what I need." — Dustin, Beneficiary of CCT
"With the help of CCT I was able to purchase my Dream vehicle. Emily at CCT was/is a HUGE help! It was a very smooth transaction." — Cathy, Beneficiary of CCT
"CCT made getting the wheelchair equip van we so much needed for our grandson the easiest purchase ever. Thank you CCT!!!" — Grandmother of Beneficiary Kobe
"CCT has been amazing. Very helpful with guiding us through this process." — Rhonda, Mother and Advocate of a CCT Beneficiary
"CCT has been wonderful in serving the financial needs of my grandson. They are always prompt in answering questions and suggesting how we can make something happen for him. He just turned 18 this year and we still plan on using this service." — Nancy, Grandmother and Advocate of a CCT Beneficiary
"CCT has been a blessing to our family. CCT has provided a sense of order, organization, trust, and leadership in helping to provide and protect the well-being of my younger sister. I would recommend CCT to anyone, and I already have." — Dan, Brother and Advocate of a CCT Beneficiary
"I have had nothing but exceptional service from this company, they take their time to help with my needs and make sure I have what I need." — Dustin, Beneficiary of CCT
*Disclaimer Statement: CCT is not a chartered bank or trust company, or depository institution. It is not authorized to accept deposits or trust accounts and is not licensed or regulated by any state or federal banking authority.
All Rights Reserved | Commonwealth Community Trust