What is a pooled income trust?
A pooled income trust (also called a “PIT”) is a type of trust designed to provide financial assistance to individuals with disabilities in the state of Virginia. The trust is funded with income from a variety of sources, including Social Security, pensions, investments, and other assets. The trust is then managed by a pool of trustees who oversee the funds and make decisions on how the money is allocated. The main purpose of the trust is to help individuals with disabilities maintain their independence and quality of life, while also preserving their financial eligibility for government benefits like Medicaid and Supplemental Security Income (SSI). When a person deposits their assets into the trust, those assets no longer count towards asset limits for government benefits eligibility, allowing individuals to maintain their benefits while having an emergency fund. The pooled trust also allows individuals to spend their money on specialized items which are not covered by government benefits, such as education, medical equipment, and housing. It also provides security and peace of mind in knowing that their funds will be managed responsibly and their money will not be taken away in the event that their benefits are cut or they become too ill to work. Furthermore, if an individual’s funds are deposited into a pooled trust, their estate will not be subject to estate taxes. This is an important consideration for individuals with disabilities or their families who wish to make sure their loved one’s assets are protected. Overall, pooled income trusts are a useful tool for people with disabilities in the state of Virginia to protect their assets while still taking advantage of state and federal benefits.
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