Legal Definitions - pooled trust

A pooled trust is a type of trust where assets from multiple individuals are combined and managed by a non-profit organization. This type of trust is often used to benefit those with low income or charities.

• For individuals receiving Medicare or Supplemental Security Income (SSI), a pooled trust allows them to have assets that do not affect their eligibility for these programs. The assets are managed by a non-profit organization, and as long as certain rules are followed, they will not be counted towards income limits. This can be helpful for individuals with special needs who inherit assets and want to avoid triggering any limits.
• Non-profit organizations may also create pooled trusts to increase their income. Individuals can have their trust managed by the organization and receive benefits for life, with the assets going to the organization after they pass away. This structure can have tax benefits for the individual and reduce management fees of assets.

Both examples illustrate the concept of a pooled trust, where assets from multiple individuals are combined and managed by a non-profit organization. This can provide benefits such as avoiding income limits for government programs or increasing income for a non-profit organization.