FINANCIAL PLANNING
the organization pools the assets of all partic-
ipants (beneficiaries/individuals with disabili-
ties) into one “master trust” with separate “sub-
trusts” or “sub-accounts” for each beneficiary.
The advantage to this trust is that the pooling
feature allows families with lower levels o f as-
sets to still have Special Needs Trust option for
their children and have a qualified entity, such
as the nonprofit, manage and provide for the
needs of their loved ones.
A Pooled Trust does have similar rules regard-
ing remaining money in an individual’s “sub-
trust” or “sub-account” when he/she dies, as
the D(4)a trust. For most pooled trusts, when
a beneficiary passes away, Medicaid is entitled
to be reimbursed for expenses they paid on
behalf of the beneficiary, and any remaining
money is usually held by the charitable orga-
nization (each organization that runs pooled
trusts will vary on the amount they hold onto
when a beneficiary passes away).
Another important element to consider when
deciding to use a Pooled Trust versus one of
the other trust options is the mobility of your
child with autism. If your child will be moving
to another state, it could be problematic to be-
gin a pooled trust in the state your child cur-
rently resides. Pooled Trusts can be state-spe-
cific, and if the pooled trust you choose is not
national (meaning it accepts beneficiaries from
all states), then if your child moves, the trust
will most likely need to be moved to a new
Pooled Trust in the state he/she resides.
3.
Third Party Special Needs Trust
This trust cannot be funded with money from
the individual with a disability. This type of trust
can be funded by anyone other than your child
with autism, which means parents, grandpar-
ents, siblings, aunts, uncles, etc. When money
is placed in this trust, it is not considered your
child’s asset, which means your child will still
qualify for government benefits such as Med-
icaid and Supplemental Security Income (SSI),
but yet the trustee (the person who manages
the trust) will use the money from this trust to
benefit your child.
Families mainly choose this type of trust is be-
cause it has no Medicaid Reimbursement Pro-
vision at the end of your child’s life. This means
that if money remains in a correctly designed
and managed Third Party Special Needs Trust
at the end of your child’s life, then the money
will be directed to whomever you determined
it would go, such as other children or grand-
children or a charity.
When considering the type of trust to choose
for your child, you must consider your situation
and consult with a professional. Please feel free
to reach out and ask us questions.
Ryan F. Platt, MBA, ChFC, ChSNC,
completed his Special Care Plan-
ner Certification in 2005 at the
American College in Bryn Mawr,
PA, in which he received advanced
training in estate and tax plan-
ning, Special Needs Trusts, gov-
ernment programs, and the emotional dynamics
of working with people and families with special
needs loved ones. In 2013, he went on to complete
the Chartered Special Needs Consultant designa-
tion. A pioneer in his field, Ryan is one of only a few
planners certified through Massachusetts Mutu-
al Life Insurance Company (MassMutual) and the
American College in Special Care Planning in Char-
lotte. He is the founder of A Special Needs Plan.
101 N. McDowell Street, Suite 120
Charlotte, NC 28204
704-326-7910
http://www.aspecialneedsplan.com
Ryan F. Platt is a registered representative of and
offers securities, investment advisory, and finan-
cial planning through MML Investors Services, LLC,
member SIPC. A Special Needs Plan is not a subsid-
iary or affiliate of MML Investors Services, LLC or its
affiliated companies. This article is not a recom-
mendation or endorsement of any products.
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