Planning for the Third-Party Pooled Special Needs Trust

For families and friends who care for a loved one with special needs, the thought of not being there someday can be overwhelming.  The need to deal with the “here and now” demands of daily life may delay families from doing the necessary planning for the future.

It is important that families give thoughtful attention 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 needed SSI and Medicaid benefits will not be jeopardized?

The way to be sure that an inheritance will reach your loved one when he or she needs it is by creating a legal device known as the Special Needs Trust, sometimes referred to as a supplemental needs trust.  A Special Needs Trust will mean the difference between receiving services that meet basic needs and a life that includes opportunities over and above basic needs such as dental care, eye care, and additional supports that public benefit programs cannot provide.

CCT provides trust administration for the Third-Party Pooled Special Needs Trust which is funded by a third party, usually a family member or friend.  By establishing a Third-Party Pooled Special Needs Trust, Grantors have the peace of mind of knowing that an inheritance will be available for the Beneficiary when he or she needs it.  Because the trust does not jeopardize the Beneficiary’s eligibility for SSI and Medicaid, the inheritance can be used to enrich the quality of their lives.

CCT’s Third-Party Pooled Special Needs Trust has a minimum of $5,000 and no maximum amount needed to fund the trust.   Disbursement requests are reviewed and approved based on the following criteria:

  • Whether benefits such as SSI and Medicaid would be jeopardized.
  • Whether the request is for the sole benefit of the Beneficiary.
  • Whether the request is prudent.
  • Whether the request is consistent with the intent of the Grantor, the person establishing the trust.

It is strongly recommended that the Grantor meet with an attorney to create or review the family’s estate plan which may include the following:  wills, titling of assets, Beneficiary designations on insurance policies and retirement plans, Guardianship needs, and personal care and advocacy issues.  CCT can work closely with an attorney to coordinate the enrollment process for the Third-Party Pooled Special Needs Trust.

If you already have an established special needs trust and are interested in having CCT take over as the Trust Administrator, please contact the CCT office.

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