What is a pooled trust?

A pooled trust is an estate planning tool regulated by California Elder Law. It is a trust that is set up and managed by a designated nonprofit organization and pools funds from multiple trusts together in order to provide financial assistance to people with disabilities. Pooled trusts can be beneficial for people with disabilities because they allow individuals to retain eligibility for certain needs-based government benefits such as Supplemental Security Income (SSI) and Medicaid. This is beneficial for individuals who want to keep their eligibility for these public benefits but also want to manage some of their own funds. The nonprofit organization managing the pooled trust will usually invest the funds into various types of investments and will use the funds to pay for the beneficiary’s bills, such as rent, medical expenses, and other necessities. The trust can also pay for services and items that help improve the beneficiary’s quality of life. The pooled trust also has a payback provision, which ensures that the pooled trust will be paid back with left over funds upon the death of the beneficiary. This is so that any excess funds can be used to help other individuals with disabilities. Pooled trusts can be a useful estate planning tool for individuals with disabilities and their families. It is important to speak to a qualified Elder Law attorney to learn more about pooled trusts and whether it is the right choice for your situation.

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