A pooled income trust, also known as a community trust, is a type of SNT. These trusts contain the assets of a person with a disability and must meet the following criteria:
- The trust is established and maintained by a nonprofit organization, which maintains separate accounts for each individual with a disability, but pools the funds for management purposes.
- Each account is set up with the sole purpose of benefiting an individual with a disability. The pooled income trust may be funded by the individual with a disability as well as a parent, grandparent, legal guardian, or court.
- The funds remaining in the trust after the individual dies may be designated to be retained by the nonprofit organization, but if not, the state may claim the right to be reimbursed for medical expenses paid on the individual’s behalf.
- Because of the many nuances involved in setting up a pooled income trust, it is crucial to find an attorney experienced in trusts involving a person with a disability.
Other Common Types of Trusts:
- Special Needs Trusts/Supplemental Needs Trusts
- Medicare Set-Asides
- Settlement Preservation Trusts
- Qualified Settlement Funds