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Third-Party Pooled Special Needs Trust

It is important to plan your estate, so you do not unintentionally disqualify your loved one for government benefits or deem him or her ineligible for means based services.

A Third Party Funded Trust is a type of Supplemental Needs Trust (d4c) administered by Life Plan Trust that safeguards government benefit eligibility, while providing for extras (above and beyond basic support). Trusts can be set up now by a grantor and funded later with the grantor’s assets.  The trust shelters the grantor’s assets while preserving benefits and services received through SSI and Medicaid.  A separate account is established for each beneficiary, but the funds are pooled for investment purposes.  A Care Plan is developed jointly with the family to identify the comprehensive needs of the beneficiary and to incorporate these needs into the trust.  

There are many options for funding a trust, including savings, investments, life insurance policy, retirement accumulations, and proceeds from real estate transactions. Assets directed to this trust can avoid a probate process and incurred costly fees.  

Life Plan Trust requires a lower minimum trust principal than most banks. The trust instrument is irrevocable.  To comply with Medicaid eligibility, funds transferred to the trust may not be withdrawn/dissolved by others. There are fees assessed for services provided to the individual with a disability.  Life Plan Trust encourages you to consult with a certified financial planner to discuss your financial goals and effective estate planning strategies. 

During the enrollment process, the grantor will execute our Declaration of Trust and Joinder Agreement. Our legal documents have been reviewed by the Social Security Regional Office of General Counsel (OGC). OGC issued an opinion that our documents meet precedence and complies with the requirements for a pooled trust under section 1917(d) (4) (C) of the Social Security Act, and the relevant provisions of the Program Operations Manual System (POMS). Life Plan Trust staff cannot give you legal advice regarding your estate and advise you to seek independent legal counsel before executing the Declaration of Trust and Joinder Agreement if you have questions or concerns. Additionally, Life Plan Trust cannot give you financial or tax advice and advise you to seek a certified financial planner and licensed tax accountant or certified public accountant to discuss financial strategies and tax questions.