Overview
Military Survivor Benefit Plan First-Party Pooled Special Needs Trust (PSNT)
A Military Survivor Benefit Plan First-Party PSNT is a trust established with annuity payments from the Survivor Benefit Plan for the benefit of a dependent child who has special needs.
CCT provides Military Survivor Benefit Plan First-Party Pooled Special Needs Trust administration services. With the passage of The Carl Levin and Howard P. “Buck” McKeon National Defense Authorization Act for Fiscal Year 2015, military members and retirees can now direct payments from a Survivor Benefit Plan 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 Supplemental Security Income (SSI) and Medicaid and can be used to enrich the quality of the beneficiary’s life. There can be peace of mind by establishing a trust knowing that payments from a Survivor Benefit Plan will be available for the dependent child with special needs.
NOTE: A bill recently introduced in the House of Representatives, that would fix a gap in the law, and allow veterans who designated their spouse as the sole beneficiary to their Survivor Benefit Plan (SBP) prior to 2015 to amend to designate a Special Needs Trust (SNT) for the benefit of their special needs dependent.
Military Survivor
Benefit Plan
When an individual with special needs receives funds as stated above, it is important to give thoughtful consideration to the following:
Important Definitions
The following outlines the Military Survivor Benefit Plan First-Party Pooled Special Needs Trust with CCT:
- Irrevocable once established
- Funded with payments from a Survivor Benefit Plan for the benefit of a military member’s dependent child who has special needs
- Protects Medicaid and SSI
- 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

How Funds in the Trust Can Be Used
The funds can be used to pay for expenses that will enhance the quality of life for the Beneficiary.
Disbursements can be requested from the trust by a Primary or Secondary Advocate.
Bills are paid by check to vendors or reimbursed to the Advocate or in certain circumstances a credit card is made available and funded by the Beneficiary’s trust account.
For more information, see our Disbursement Information Manual.

Are you ready to set up a trust?
Visit the Process of Joining for detailed steps in setting up a pooled trust with CCT.