As you can imagine, the field of estate planning encompasses many different areas and specialties. Estate plans are designed to be personalized and tailored to address an individual’s specific needs and goals. For instance, the estate plan of a high-net-worth individual who is passionate about supporting charitable causes will look quite different from an estate plan for a parent of five children who has real estate property in three different states. When it comes to creating an estate plan in Washington state, it’s essential to work with a knowledgeable and experienced legal professional who can help you articulate your needs and goals so that you can identify the most appropriate tools to support your vision.
If you have a loved one with special needs, you are likely anxious about keeping them safe and financially secure both now and in the future–even after you are no longer here to provide for them. At Kristina Mattson Law, we are committed to helping you and your family understand your estate planning options so that you can feel confident and hopeful about the future. Depending on your circumstances and goals, we can explore tools like special need trusts that can safeguard your vulnerable loved ones in several ways. This post will focus primarily on a specific type of special needs estate planning, known as a pooled trust. To learn more about your estate planning options in eastern Washington, please reach out to Kristina Mattson Law to get started.
Understanding Pooled Trusts in Washington State
According to the Special Needs Alliance (SNA), “Pooled special needs trusts are established and administered by a non-profit organization for the benefit of multiple special needs beneficiaries whose accounts and assets are ‘pooled’ under the terms of a master trust agreement.” In other words, individual beneficiaries create distinct accounts within the larger pooled trust, creating a larger pool of assets among the invested parties. Due to the pooled nature of the trust, this entity can produce more stable investments and access enhanced management services while allowing every beneficiary’s account to remain their own. Moreover, pooled special needs trusts can be a more affordable option since they offer lower minimum funding requirements than many financial institutions. Like other types of special needs trusts, pooled trusts allow individuals with disabilities or special needs to enjoy financial security without jeopardizing their eligibility for government assistance benefits, like Medicaid or Supplemental Security Income (SSI). If you are interested in learning more about how pooled trusts in Washington state can help certain individuals achieve their estate planning goals, get in touch with a dedicated and caring special needs estate planning attorney today.
Allowable Expenses Under a Pooled Trust
Like other types of special needs trusts, pooled trusts have specific guidelines about how the funds in the trust can be used by the beneficiaries. In general, allowable pooled trust expenses include those for medical and health-related expenses, transportation costs, education and training expenses, and caregiver and home assistance services. In some circumstances, pooled trust expenses may also be used for recreation and entertainment without being counted as unearned income or affecting SSI benefit eligibility.
Pooled Trust Expenses That Are Not Allowed
When it comes to pooled trust rules regarding allowable expenses, there are key costs that will be counted as unearned income and can reduce or jeopardize the beneficiary’s SSI payments. Any cash payments from the pooled trust, including gift cards or certificates paid directly from the trust to the recipient, will be considered unearned income. Additionally, any special needs trust expenses used to pay for items not benefitting the intended beneficiary are not allowed. Using pooled trust funds to cover certain government benefits may impact SSI eligibility as well. If you have additional questions about setting up a disability trust in Washington, reach out to Kristina Mattson Law to speak with a trusted and compassionate Spokane estate planning attorney.
Recognizing the Role of a Trustee in Expense Approval
When any kind of special needs trust is set up, a trustee will be appointed to manage the trust according to the terms while acting in the best interests of the trust beneficiary. The trustee’s role is to ensure that the beneficiary continues to receive their public benefits and that any distributions are made in compliance with the trust’s terms and conditions. One of the most important responsibilities the trustee has is ensuring compliance with Medicaid and Social Security rules and eligibility requirements. Whether you are interested in learning more about the role of a special needs trust trustee or you are concerned that the current trustee has breached their fiduciary duty to acting in the best interest of the trust beneficiary, it’s worth enlisting the guidance and support of a skilled Sponake trust administration lawyer.
Frequently Asked Questions (FAQs) About Pooled Special Needs Trusts in Washington State
There are several reasons to consider setting up a special needs trust as a part of your estate plan. As you begin to explore your options for putting these valuable tools in place to protect your loved ones, several questions may arise. Here are some of the most frequently asked questions (FAQs) about special needs trusts in the greater Spokane area.
What Types of Medical Expenses Can Be Paid From a Pooled Trust?
Pooled special needs trust funds may be used for the benefit of the beneficiary and for expenses not covered by public benefits. For instance, pooled trust funds may be used to cover certain medical expenses not covered by SSI or other assistance programs, such as eyeglasses, hearing aids, or prosthetic devices.
Can Pooled Trust Funds Be Used For Travel Expenses?
Generally speaking, pooled trust funds may be used to cover certain transportation expenses, which may include travel costs. However, it’s best to check the specific rules and eligibility guidelines that apply to the pooled trust to which the beneficiary belongs.
What Happens if an Unapproved Expense is Made?
Using the funds from a pooled trust without approval or in violation of the terms and guidelines of the trust can lead to several consequences, such as becoming ineligible for public benefits like SSI and Medicaid. It’s best to discuss your concerns with a knowledgeable and experienced Spokane special needs trusts lawyer to identify the most strategic path forward.
If you are interested in learning more about how to set up a special needs trust, or to explore your estate planning options in the greater Spokane area, Kristina Mattson Law is ready to help. Please reach out to our office today at (509) 998-6629 to get started with a dedicated and caring estate planning attorney.
