Our Trusts

What is a Pooled Supplemental Needs Trust (SNT)?

In its simplest form, a trust is a relationship where one person holds title to property or controls funds with an obligation to keep it for the benefit of another. In a pooled Supplemental Needs Trust or SNT:

The GRANTOR gives money to...
The TRUSTEE who puts the money into a pool, with money from other grantors, for investment administrative purposes. The Trustee keeps accurate records of each sub-account within the pool, and makes distributions from an individual sub-account for...
The BENEFICIARY, who has a disability.

Each sub-account will receive investment income, and pay investment expense, according to the percentage each sub-account represents as part of the total pool.

How Can the Pooled SNT be Used?

Disbursements from the trust are used for the supplemental needs of the disabled beneficiary. The trust cannot be used for food, shelter (with the exception of purchasing a home), or for medical care already being provided by Medicaid or Medicare. Some examples of what a trust can be used for are:

Durable Medical Goods
Home Modifications
Phone
Vacations
Electronic Devises or Appliances
A Vehicle
Cable
Companion Services
Recreational Products or Activities

The case manager assigned to each beneficiary will develop an Assessment and Plan to identify the beneficiary's needs. The beneficiary and/or their representative will also have input into the plan.

Are there Different Types of SNT's?

There are two different types of pooled SNT's based on who "owns" the money which funds the trust.

If the money belongs to the beneficiary, it will go into a First-Party SNT. This can be set up by the beneficiary, a parent, grandparent, legal guardian or the court.
If the money belongs to someone other than the beneficiary, and will be put into a Trust for the benefit of the beneficiary, it will go into a Third-Party SNT. This can be sent up by anyone other than the beneficiary and has two different options:

- A Third-Party SNT (Low Asset Pool) currently funds less than $100,000.

- A Third-Party SNT (High Asset Pool) currently funds over than $100,000.

Why is a Pooled SNT Needed?

It helps protect a disabled person's eligibility for government benefits after they have saved what the resource limit allows or received a lump sum of money. A pooled SNT does the following:

It puts money in a properly constructed SNT that is not counted as a resource.
It allows for appropriate trust distributions that can not be counted as income.

What Do I Need to Know About Joining the Trust?

The trust is irrevocable, once a person joins CFPD, he or she cannot later withdraw the funds.
When a beneficiary dies, in the cases of first party trusts and third party low asset trusts, the balance of the trust remains with CFPD to be used for charitable purposes.
In the case of a third party, high asset trust, 20% of the balance of the trust remains with CFPD and the other 80% is given to the heirs of the beneficiary.
Case Managers do not disburse cash to beneficiaries, but rather items and services are purchased directly by the case manager.
The beneficiary is the only person who can benefit from the trust.
Funds are invested with the American National Bank trust department.

How Will a Pooled SNT Help the Beneficiary?

A pooled SNT can help the Beneficiary in at least 3 ways:

It allows the Beneficiary to continue receiving SSI, Medicaid and other government benefits; while also benefiting from their own savings, an inheritance, personal injury settlement, back payment from Social Security, proceeds from the sale of a house or other financial awards.
It provides money management for those who would not otherwise be able to handle a significant sum of money; or who would be vulnerable to exploitation
It helps increase the Beneficiary's quality of life; beyond what would usually be possible for those on public benefits.

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