“Pooled Trust” means that the funds from each separate trust are “pooled” for investment purposes only. Each beneficiary has his or her own separate trust sub-account and only that beneficiary has access to his or her subaccount. By “pooling” the funds for investment only, the administrative costs and overhead are reduced because they are shared by all of the trust accounts.
Frequently Asked Questions
What is a “Pooled Trust”?
Are there different types of Special Needs “Pooled Trusts”?
There are two different types of pooled Special Needs Trusts based on who “owns” the money that funds the trust. If the money belongs to the trust beneficiary, it will go into the MARC Special Needs Pooled Trust. If the money belongs to someone other than the trust beneficiary, it will be put into the PLAN of Massachusetts and Rhode Island Third Party Special Needs Pooled Trust.
Is there a minimum or maximum amount for establishing a Pooled Trust Account?
There is no minimum or maximum amount for establishing a Pooled Trust Account. Because there are annual management and other fees charged to each subaccount, we encourage everyone to look at these fees before establishing an account.
How do I fund a Pooled Trust?
A Pooled Trust is funded with cash assets. Cash assets may be generated by checks, money orders, annuities, insurance policies, wills, inheritances, savings accounts, etc. A Pooled Trust cannot accept real or personal property.
Do I need my own attorney to establish a Pooled Trust?
Because a Pooled Trust is a legal document, anyone interested in establishing either of the Pooled Trusts should consult with an attorney. PLAN of Massachusetts and Rhode Island cannot provide legal advice about any specific situation. PLAN of Massachusetts and Rhode Island works with your attorney throughout the process of establishing a Pooled Trust account.
After I put money into the Pooled Trust, can I change my mind and remove my money?
No. By law the Pooled Trust is irrevocable.
Who manages the money in the Pooled Trust?
Funds from the individual sub-accounts are pooled together and invested by the Financial Manager, Cambridge Appleton Trust, N.A. There are a number of safeguards that limit the vulnerability of the pooled trust investments. These safeguards include rigorous reviews every 18 months by the Office of the Comptroller of the Currency (OCC), liability insurance, and internal audits that include annual inspection of financial records.
PLAN of Massachusetts and Rhode Island has the power to change the Financial Manager if we believe that their performance is not satisfactory.
What does it mean that the Pooled Trust is “discretionary”?
Federal and state law and regulations require that PLAN of Massachusetts and Rhode Island approve all disbursements from the Pooled Trust. Neither the beneficiary nor any person acting on behalf of the beneficiary has any authority to require disbursements from the trust.
What kinds of expenses can be paid from my subaccount?
The funds in a Pooled Trust sub-account are for the sole benefit of the trust beneficiary. Disbursements are made at the discretion of PLAN of Massachusetts and Rhode Island. In general, funds are to be disbursed for services and items that the beneficiary’s public benefits are not intended to cover. Except in rare circumstances, payments are made directly to the vendors.
How do I request a disbursement from my account?
Each Pooled Trust Beneficiary is sent a Welcome Package with instructions and forms for requesting disbursements. Bills or receipts for the requested expense must be attached with any request for disbursement.
What happens to money remaining in a Pooled Trust subaccount after the beneficiary dies?
This depends on which pooled trust you established.
With the MARC Special Needs Pooled Trust, which is self-funded, after a beneficiary dies, PLAN of Massachusetts and Rhode Island retains 25% of the balance remaining after certain administrative expenses are paid. PLAN of Massachusetts and Rhode Island uses this money for charitable purposes. Because this is a Medicaid Pay Back Trust, Medicaid is entitled to be reimbursed from the balance then remaining for any services it made to the beneficiary during his or her lifetime. Any balance, after these payments, is distributed to the remainderpersons named in the Instrument of Trust Assignment.
The PLAN of Massachusetts and Rhode Island Third Party Special Needs Pooled Trust does not require that Medicaid be reimbursed or that PLAN of Massachusetts and Rhode Island retain any portion of the balance remaining after the beneficiary’s death. The donor(s) name the remainderpersons who are to receive any balance remaining (after certain administrative expenses are paid) in the Joinder Agreement.
What are the fees for the Pooled Trust?
Fee schedules for each trust can be found under Related Forms in the "Getting Started" or "For Attorneys" sections.
How will I know that my child's needs will be met when I am gone?
The Life Care Plan plays a crucial role in guiding PLAN of Massachusetts and Rhode Island in the administration of a beneficiary’s third party trust sub-account. It outlines the wishes of the parent/donor with regard to how he or she wants the trust to be utilized to benefit their loved one. It assists the Service Coordinator in determining the beneficiary’s needs and how to meet those needs while taking the parent’s/donor’s wishes into consideration. Because of this, it is very important that we have a completed Life Care Plan on file and that it is updated regularly so that the donor’s wishes for the trust beneficiary are met to the best of our ability.
What should I do if I have more questions and want to talk to someone?
You can click on the "Contact Us" link and send us an email or call our office and someone will be glad to assist you.
