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
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.