Illinois "Pooled" Trusts for Special Needs
In her article from the Wall Street Journal titled, An Estate Plan for Special Needs, Rachel Silverman explains how an estate planner can create a “pooled” trust which can be a useful tool for a family with a special needs member. She writes,
“Another option is ‘pooled’ trusts, in which funds from many special-needs families are bundled together and managed by nonprofit groups that focus on disability issues. Families typically use pooled trusts if they can’t find appropriate individual or bank trustees, or if they have a small trust account that would benefit from bunching with other families”.
We recently assisted a client who was receiving Supplemental Security Income benefits from Social Security and was awarded a $17,000 settlement from a class action lawsuit. By depositing the settlement money in a pooled trust operated here in Illinois, the client was able to retain his monthly Supplemental Security Income benefits and have access to the $17,000 settlement funds to purchase needed furniture for his room and visit a close relative he hadn’t seen in a long time.
Once the Special Needs Trust has been established, the funds are available for use by the disabled individual and remain secure until they are used.
