Pooled Trusts

Special Needs Trusts are utilized to help provide the extras in life, above and beyond the basics provided by government programs. The Arc Georgia Pooled Trust offers two types of trusts to help families provide the highest quality of life for a family member with a disability… now and for the future.

  • First Party Trusts
    Prior to 1993, a person receiving government assistance could not place his or her own money into a Special Needs Trust. This meant that if an individual received an inheritance, insurance settlement or back payment from Social Security, he or she could lose eligibility for government benefits until those funds were spent. Thanks in part to the work of the Arc of the United States; a law was passed that allowed such funds to be placed into a Special Needs Trust. First party trusts provide individuals with disabilities with a safe harbor for their funds without endangering their governmental benefits.
  • Third Party Trusts
    When parents, grandparents, or other family members create a third party trust, typically a will, life insurance, or other financial holdings are created or modified to fund the trust at the time of their death.

In both types of trusts, The Arc Georgia Pooled Trust allows funds to be pooled to maximize investments; however each trust beneficiary has his or her individual trust account.

The Arc Georgia Pooled Trust provides a variety of unique benefits:

  • A benefit of a pooled trust is the flexibility in using it when the family is not sure a special needs trust is required. Each family is unique, sometimes a parent is unsure of whether a child will have state/federal benefits that need protection, or if the child will need financial management assistance in the future.
  • Pooled trusts also help eliminate choice of trustee issues. This is of great benefit to families that do not have people who can serve as trustee. A trustee must not only comply with all fiduciary duties required of all trustees but also must be aware of changing public benefit program policies, have a working knowledge of community and governmental resources for persons with disabilities, and anticipate the impact of distributions on public benefit eligibility.
  • Membership, initial start up, and on-going costs are lower than an individual special needs trust. Because assets are pooled together, the trust is able to reduce the cost of administration and management.
  • Using a pooled trust may also offer a unique opportunity for the grantor and beneficiary to experience the pooled trust administration during the lifetime of the parent or other family member.
  • Pooled trusts offer strategies that combine money markets, stocks, and income funds to fit investor timelines and risk tolerance.

For more information contact:

Teresa Whitton –   FSG Bank, Trust Administrator

531 Broad Street
Chattanooga, TN 37402

Tel: 423-668-3072   x5972

mailto:twhitton@setrustco.com

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