Planning for the Military Survivor Benefit Plan Pooled Special Needs Trust

Commonwealth Community Trust (CCT), a national nonprofit organization that administers pooled special needs trusts, now offers the Military Survivor Benefit Plan Pooled Special Needs Trust. With the passage of the National Defense Authorization Act of 2015, military members and retirees can now direct annuity payments from the Survivor Benefit Plans  to a special needs trust for the benefit of a dependent child who has special needs.

This trust does not jeopardize the Beneficiary’s eligibility for SSI and Medicaid and can be used to enrich the quality of the Beneficiary’s life. By establishing a trust, there can be peace of mind knowing that annuity payments from a Survivor Benefit Plan will be available for a loved one.

The following outlines the Military Survivor Benefit Plan Pooled Special Needs Trust with CCT:

  • Irrevocable once established
  • Funded directly with annuity payments from the Survivor Benefit Plans for the benefit of a military member’s dependent child who has special needs
  • Protects SSI and Medicaid benefits
  • Upon the Beneficiary’s death, requires payback to Medicaid for Medicaid benefits the Beneficiary received during his or her lifetime
  • Funds are for the sole benefit of the Beneficiary
  • By law, must be set up as a first-party funded special needs trust (due to the Medicaid payback provision)
  • Funds are pooled for investment purposes