Why A Master Pooled Asset Trust

The Lifetime Advocacy Plus Master Pooled Asset Special Needs Trust, commonly known as “Master Trust”, meets all qualifications for D4c trusts as defined by Social Security Act Section 1917.  Assets held in these trusts are treated as excluded resources for purposes of SSI and Medicaid.  These trusts can be used by persons of any age, but persons who are 65 or older and who receive either SSI or Medicaid long-term care coverage may be subject to a transfer of asset penalty if they put funds in the trust.

See Section 1917 of the Social Security Act at:
http://www.ssa.gov/OP_Home/ssact/title19/1917.htm

See the Social Security website “Spotlight on Trusts” at:
http://www.socialsecurity.gov/ssi/spotlights/spot-trusts.htm

See Senior Bulletin: Medicaid-Pooled-Asset Special Needs Trusts for Medicaid and SSI Beneficiaries:
http://www.washingtonlawhelp.org/files/

Asset distribution rules, including possible gifting, are governed by Medicaid, Social Security, IRS regulations.

When to Choose the Master Pooled Asset Trust

Over Age 65: If the person with disabilities is over age 65 then they do not qualify for a Special Needs Trust.  The Master Trust is likely the only financial vehicle available to protect the assets for the person with disabilities. The Medicaid gifting penalty will apply.

Cost-effectiveness is the key reason to establish a Master Trust for a client under the age of 65.  Assets can be preserved in the Master Trust without incurring legal fees normally associated with drafting a new trust.  If the client has a relatively substantial amount of money, however, a Special Needs Trust may be a better option.  The assets of a Master Trust are meant for the “sole benefit” of the person with disabilities.

Lifetime Advocacy Plus [LA+] as Trustee

With over 60 years of experience in managing resources for people with significant life challenges, including Special Needs Trusts. LA+ is expert in implementing distributions rules that govern trusts, utilizing well trained professional staff and volunteer experts from the banking, investment and financial management community.