SI BOS01120.203 MARC Special Needs Pooled Trust (TN 5-241 - 8/2003)

A. Background

The MARC Special Needs Pooled Trust was established in 1995, and amended in April 1998 and November 2001. The trust was established by MARC Trust, Inc., a non-profit association, and is irrevocable. The pooled trust contains individual trust accounts that are funded with the beneficiary's own assets; thus, are considered “grantor” trusts. The fact that the trust is irrevocable is sufficient to exclude from resources individual trust accounts that were established prior to January 1, 2000. In addition to being irrevocable, the master pooled trust and individual trust accounts within it must meet the Medicaid Special Needs Pooled Trust exception as described in SI 01120.203B2.

As originally written, the MARC Special Needs Pooled Trust met all of the Medicaid Pooled Trust exception requirements, other than the one that medical assistance agencies be reimbursed before making other distributions of the trust contents, except allowable administrative expenses, upon a beneficiary's death. The trust was written to show that funeral expenses would be paid before medical assistance agencies, and payment of funeral expenses is not permitted prior to reimbursement for medical assistance. The amendment of November 2001, to Article VIII of the trust, changed the order in which expenses would be paid upon the death of the beneficiary, so that to the extent that the trust does not retain the funds in an individual trust account, medical assistance agencies will be reimbursed before all other expenses. This change was effective January 1, 2000.

NOTE: Article III of the master trust provides that upon the death of a beneficiary, the MARC Trust, Inc. retains 15% of the principal in the beneficiary's individual trust account for administrative purposes. After that, medical assistance is listed as the first payee for any funds remaining in the account.

B. Policy

1. Individual Trust Accounts Funded Prior to January 1, 2000

Individual trust accounts, within the pooled trust, funded prior to January 1, 2000 are excluded from resources for SSI purposes since they are considered established prior to January 1, 2000 and are irrevocable.

2. Individual Trust Accounts Funded ON or AFTER January 1, 2000

In addition to the master trust meeting the Medicaid Pooled Trust exception, individual trust accounts in the MARC Special Needs Pooled Trust, funded on January 1, 2000 or later, must be established in accordance with the requirements in SI 01120.203B.2; i.e., the account must be established by the disabled individual, or a parent, grandparent, legal guardian, or court; must be funded with the disabled individual's own assets; and, the disabled individual must be the sole beneficiary.

C. Procedure

The MARC Special Needs Pooled Trust master trust meets the Pooled Medicaid Pooled Trust exception; however, each individual account must meet the requirements described in SI 01120.203D.2, steps 1, 4, 5, and 6, as follows:

  • The account must be established with assets of a disabled individual.

  • The disabled individual must be the sole beneficiary.

  • The account must be established by the individual, parent, grandparent, legal guardian or a court.

  • The account must specify that medical assistance agencies will be reimbursed upon the individual's death from funds not retained by the trust as required by SI 01120.203A.2.f.

D. References

SI 01120.200 - Trusts Established Prior to 1/1/00

SI 01120.201 - Trusts Established by an Individual on or after 1/1/00

SI 01120.203 - Exceptions to Counting Trusts Established on or after


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0501120203BOS
SI BOS01120.203 - MARC Special Needs Pooled Trust (TN 5-241 - 8/2003) - 10/17/2022
Batch run: 12/18/2024
Rev:10/17/2022