Our Trusts

Pooled Supplemental Needs Trust

In 1993 Congress enacted the Omnibus Budget Reconciliation Act of 1993 (OBRA ‘93) which authorized the use of certain Supplemental or Special Needs Trusts (SNTs) to preserve the assets of a person with a disability, while at the same time permitting that person to preserve eligibility for public benefits such as Supplemental Security Income (SSI) and Medicaid. The SNT authorized by OBRA ’93 is commonly known as a pooled special needs trust or a (d)(4)(c) SNT.

In its simplest form, a Trust is a relationship, in which one person holds title to property, subject to an obligation to keep or use the property for the benefit of another.

In A First Party Pooled Trust:

  • The GRANTOR (the person affected by disability) gives money to...

  • A Trustee (like CFPD) who puts the money into a pool, with money from other grantors, for investment and 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.

Benefits of a Pooled SNT

  • 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 award.

  • 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

  • Helps enhance the Beneficiary’s quality of life; beyond what would usually be possible for those on public benefits.

First Party Pooled Trust Requirements

  • Distributions must be made at the discretion of the Trustee. Funds cannot be available or accessible to the Beneficiary.

  • The funds are to be used to “supplement not supplant” any government benefits. They generally cannot be used for food or shelter, or for anything that can be used to obtain food or shelter.

  • The Trust must contain specific language stating that any remainder, after the death of the Beneficiary, will be paid back to the State Medicaid Agency, to the extent that it is not retained by the Pooled Trust.

  • The Trust must be administered by a non-profit organization.

In A Third Party Pooled Trust

This Third Party Trust is for parents and family members who want to provide for a person with special needs. CFPD holds, protects and administers "inherited" money for the individual with a disability in a professional, caring and cost-effective manner.

Third Party Pooled Trust Benefits

  • The Grantor can name the remainder Beneficiary.

  • There can be multiple Grantors.

  • There are times when an Private Third-party special needs Trust (SNT) is impractical due to the costs and complexity.

  • Pooled Trust is recommended for Trusts with assets under $250,000.

  • The Trust can be set up now or deferred until funds are distributed under an estate plan.

  • The Third Party Master Trust has already been created and approved, therefore it does not require an attorney to prepare a Trust document

  • CFPD puts your clients’ money into a pool, with money from other participants, for investment administrative purposes.

  • CFPD keeps accurate records of each sub-account within the pool, and makes distributions from an individual sub-account

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

Third Party Pooled Trust Requirements

  • Beneficiary does not have the legal authority to revoke the Trust or direct the use of the Trust assets

  • Distributions must be made at the discretion of the Trustee. Funds cannot be available or accessible to the Beneficiary.

  • The funds are to be used to “supplement not supplant” any government benefits. They generally cannot be used for food or shelter, or for anything that can be used to obtain food or shelter.

  • The Trust must be administered by a non-profit organization.

Deferred Funding of the Trust

Often times family members will provide in their estate plans for individuals with disabilities, a bequest to a Special Needs Trust in their will or Revocable Living Trust, when there is a need to protect eligibility for public benefits.

Sample Language: "I hereby give (describe the gift) to the CFPD Third Party Low Asset Trust, dated February 15, 2006, as Amended, to be administered for the benefit of (Beneficiary) pursuant to the terms of said Trust which I fully incorporate herein." A copy of the document and Grantor’s Intent Form should be maintained at CFPD.

Private Case Management Services - We can assist with:

  • Applying for benefits

  • Locating housing

  • Representative Payee Services

  • Conservatorships

  • Trust Advisory Services

  • Short-Term/Long-term Assessment and Planning

  • Benefit Analysis

Companion Trust

Occasionally, a Beneficiary will have funds of their own that need to be set up in Trust, they inherit funds or receive a Personal Injury Settlement later which require protection under an SNT. We would be happy to answer questions about setting up Companion Trusts based on specific needs.