The Golden State Pooled Trust is a pooled special needs trust. Special needs trusts, more broadly, are established to support individuals with disabilities by providing for supplemental needs that enhance quality of life. Special needs trusts should reflect the unique objectives, values, and needs of the beneficiary, and should focus on enabling the beneficiary to achieve as much independence as possible.
In addition to enhancing quality of life, special needs trusts are an important vehicle by which individuals with disabilities can stay eligible for needs-based government benefits such as SSI or Medicaid, while still being able to address ongoing supplemental needs. With a special needs trust, funds are set aside in such a manner that the beneficiary does not own them — the trust holds title to the property for the benefit of the individual. The trustee then has full discretion to make distributions that are aligned with the individual’s needs and values. Because the beneficiary cannot directly access the funds or convert them to cash, they are not considered a “resource” for the purposes of calculating government benefits eligibility.
A pooled special needs trust is a particular type of special needs trust whereby beneficiaries’ assets are pooled together for investment purposes. The Social Security Administration indicates that pooled special needs trusts must meet the following requirements:
- The trust is established and managed by a nonprofit association.
- A separate account is maintained for each beneficiary of the trust, but, for purposes of investment and management of funds, the trust pools these accounts.
- Accounts in the trust are established solely for the benefit of the disabled individual by the parent, grandparent, or legal guardian of such an individual, by such an individual, or by a court.
- To the extent that amounts remaining in the beneficiary's account upon the death of the beneficiary are not retained by the trust, the trust pays to the State from the remaining amounts in the account an amount equal to the total amount of Medicaid assistance paid on behalf of the beneficiary under the State plan under this subchapter.
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