What is a pooled trust?

A pooled trust is a type of trust recognized by the state of Texas that enables individuals with disabilities to protect their assets while also qualifying for much-needed public benefits. Pooled trusts are established and maintained by non-profit organizations that receive, manage, and invest the trust assets. Pooled trusts are unique in that all of the individuals’ contributions are pooled together, and each individual’s assets are kept separate. The pooled trust serves as a way for individuals with disabilities that have limited financial resources to supplement their needs with the assistance of public benefits. In Texas, pooled trusts are used in conjunction with disability planning law. This type of trust is typically used to provide supplemental services, such as medical care, home-based services, assistive technology, educational services, or other services that help maintain a disability beneficiary’s quality of life. Under the Texas disability planning law, individuals with disabilities can transfer and protect assets without losing eligibility for public benefits such as Supplemental Security Income (SSI) or Medicaid. The benefit of using a pooled trust is that the assets within the trust are protected from creditors and are not counted as a resource for the purposes of determining eligibility for public benefits programs. By utilizing a pooled trust, individuals with disabilities can provide for themselves without losing access to critical public benefits.

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What is a pooled trust?

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