Overview
Third-Party Pooled Special Needs Trust (PSNT)
A Third-Party PSNT is established by a parent, relative, or friend of the beneficiary, and can be coordinated with an estate plan, insurance policy, or gift.
By establishing a Third-Party PSNT, Grantors have the peace of mind of knowing that funds will be available for the Beneficiary.
When planning for a loved one with special needs it is important to give thoughtful consideration to the following:
- What financial support will my loved one need when I am no longer here?
- Will my loved one be able to enjoy the same quality of life that they have now?
- Who will administer the trust and ensure that the funds are managed and used for the benefit of my loved one?
- How can I ensure that eligibility for Medicaid and Supplemental Security Income (SSI) benefits will not be jeopardized?
Third-Party PSNT
Important Definitions
Funding the Trust
The most common way trusts are funded is through the Grantor’s will, estate plan, life insurance policy, or employee benefit. The trust can also be funded by a gift, bequest, or inheritance. CCT accepts cash assets for deposit into the trust; no real estate or non-cash assets are accepted. Once funded, the trust is irrevocable.
Once the Grantor completes the Joinder Agreement and other forms, the trust is set up and waiting to be funded. There is no expectation that the account be funded immediately. The account is available to receive funds (cash/check) from any source and at any time. When appropriate it is helpful to notify family members and others about the Beneficiary’s special needs trust account and that funds be directed to the special needs trust with CCT and not given or left directly to the individual (see sample letter).
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.