April 7, 2016

Pooled Special Needs Trusts

Pooled Account Special Needs Trusts, also known as d4c trusts, have similar basic requirements as individual SNTs, but include important differences such as:

  • A pooled account trust must be created and managed by a nonprofit organization. GFAS is the only nonprofit in Southwest Michigan offering pooled special needs trusts.
  • A beneficiary can become enrolled in a qualified pooled trust through a joinder agreement. This contract between the beneficiary and the trustee can save considerable legal costs to establish the trust.
  • All funds are pooled together for investment purposes, creating efficiencies over individual trusts. Each beneficiary has his or her own individual sub-account in the pool which separately accounts for funds including deposits, disbursements, and investment income earned.
  • For a first party pooled account trust, which is funded with the beneficiary’s assets, the trust may provide that, upon the death of the beneficiary, any remainder amounts in the trust are retained in the pool to the benefit of other beneficiaries in the pool. This option may vary depending upon the master trust document. Please click here to see a copy of Guardian’s First Part Pooled Trust Joinder Agreement.
  • For a third party pooled account trust, which is funded with assets from someone other than the beneficiary, there are options for the third party to designate remainder beneficiaries for funds remaining in the trust after the death of the beneficiary.  Please click here to see a copy of Guardian’s Third Part Pooled Trust Joinder Agreement.

 

Please contact Martha Morgan, Trust Officer, at 269-788-1690 with questions, or send an email through the link below.

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