Self-Settled Special Needs Trust Under 42 U.S.C. §1396p(d)(4)(C): Introduction to the Maine Pooled Disability Trust

The federal law and MaineCare rules that authorize (d)(4)(A) trusts also permit (d)(4)(C) trusts, known as "pooled trusts." Instead of holding the assets of a single individual with disabilities, a pooled trust holds the resources of many beneficiaries. The assets in the pooled trust are managed, administered and distributed by a non-profit association. Also, unlike individual (d)(4)(A) trusts that may be created only for those under age 65, pooled trusts may be for beneficiaries of any age.

The first (d)(4)(C) trust in Maine came into existence in 2002. Each beneficiary of the Maine Pooled Disability Trust has his or her own sub-account. The Trustees of the trust meet once a month to make decisions about disbursements from the trust to a beneficiary.

Upon the death of beneficiary, 50% of the funds in the sub-account are retained in the trust for the benefit of other disabled individuals or charities. The other 50% is made available to reimburse the State of Maine or any other state for medical assistance paid on behalf of the deceased beneficiary. If any funds remain, those may be distributed to the beneficiary's heirs.

Skelton Law Offices, LLC, has recommended the Maine Pooled Disability Trust to several clients for whom a (d)(4)(C) trust is a more appropriate vehicle than the (d)(4)(A) trust to preserve an individual's assets and his or her eligibility for public benefits.