What is a pooled trust?

A pooled trust is a type of financial planning tool used by people with disabilities to manage and protect their assets. It is designed to provide individuals with special needs the opportunity to manage their own finances for their lifetime. In South Carolina, a pooled trust is established by a non-profit organization, or “pooled trust provider,” to manage the assets of one or more individuals with disabilities. Beneficiaries of the trust are able to use the pooled trust to purchase goods or services that can improve their quality of life, yet still remain eligible for government benefits. The trust assets are put into a “pool” and managed by a trustee, typically the pooled trust provider. The pooled trust provider is responsible for keeping track of all the accounts and maintaining records for each account. As a result, the trust assets are managed according to the trust document and beneficiary directions. All funds within the trust must be used solely for the benefit of the beneficiary or for his or her benefit and to supplement, but not supplant, government benefits. Any unused funds remaining in the trust when the beneficiary dies are used to reimburse the government for any benefits the beneficiary received while alive.

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