What is a pooled trust?

A pooled trust is a type of trust used to help individuals with disabilities pay for their medical and living expenses. It allows disabled individuals, or their families, to place their assets in a trust to be managed by a nonprofit organization. The organization will then use the funds to pay for any goods and services that benefit the disabled individual, such as medical care, housing, and other living expenses. A pooled trust is regulated by the state of Florida and administered by a nonprofit organization. The trust is pooled together with other trusts in order to minimize administrative costs and maximize benefit to the beneficiaries. The organization appoints a trustee who is responsible for managing the trust, including investing asset funds and administering distributions, in accordance with the trust agreement and Florida law. The beneficiary of a pooled trust is able to keep their assets and still qualify for government benefits like Supplemental Security Income (SSI) and Medicaid , as the trust is considered a third party and does not count as income or assets. The funds within the trust are not subject to estate taxes or any other form of taxation when the beneficiary passes away. Due to the complexity of disability planning law, it is important to carefully consider the potential benefits and risks of a pooled trust before establishing it. It is recommended to contact an attorney or financial advisor to discuss your options.

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