A pooled trust contains the assets of many different individuals, each held in separate
trust accounts and established through the actions of individuals for separate beneficiaries.
By analogy, the pooled trust is like a bank that holds the assets of individual account
holders. A pooled trust is established and managed by a non-profit organization. The
pooled trust instruments usually consist of an overarching “master trust” and a joinder
agreement that contains provisions specific to the individual beneficiary.
Whenever you are evaluating the trust, it is important to distinguish between the
master trust, which is established through the actions of the nonprofit association,
and the individual trust accounts within the master trust, which are established through
the actions of the individual or another person or entity for the individual, through
a joinder agreement.
The resource-counting provisions of section 1613(e) of the Act do not apply to a trust
containing the assets of a disabled individual that meets the following conditions:
The pooled trust is established and managed by a nonprofit
Separate accounts are maintained for each beneficiary, but assets are pooled for investing and management
Accounts are established solely for the benefit of the disabled
The account in the trust is established through the actions of the
individual, a parent, a grandparent, a legal guardian, or a
The trust provides that, to the extent that any amounts remaining in the beneficiary's
account, upon the death of the beneficiary, are not retained by the trust, the trust will pay to the State(s) from such remaining amounts in the account an amount equal to the total amount of
medical assistance paid on behalf of the beneficiary under State Medicaid plan(s).
NOTE: There is no age restriction for this exception. However, a transfer of resources
into a trust for an individual age 65 or over may result in a transfer penalty (see
NOTE: A trust that meets the exception to counting for SSI purposes under the statutory
trust provisions of 1613(e) must still be evaluated under the instructions in SI 01120.200, to determine if it is a countable resource.