Flexible Pooled Trust Options

Protect Assets while Securing Government Benefits

Life’s WORC Trust Services offers three Pooled Trust options: Self-Settled Pooled Trusts, Third-Party Pooled Trusts and Surplus Income Trusts.

Self-Settled Trust

A Self-Settled or First Party Trust protects the proceeds received from personal injury awards, inheritances or Social Security settlements, making funds available for medical expenses not covered by Medicaid. The funds can be used for virtually anything that enriches the beneficiary’s life from medical expenses Medicaid or other insurance does not cover, to daily living expenses, recreational activities and vacations. Trust assets supplement—but do not replace—government entitlements.

Self-Settled Trust assets are not countable resources for Medicaid and SSI purposes, so the individual will not lose benefits or services due to funding a trust to meet maximum income or resource requirements.

Any funds remaining at the beneficiary’s death by law must remain with the trust to support other people with disabilities or be paid back to the state.

Third-Party Trust

Funded by family members, guardians and others, a Third-Party Special Needs Pooled Trust from Life’s WORC puts aside assets for a loved one with a disability—without jeopardizing their Medicaid or Social Security benefits.

Third-Party Pooled Trusts can be opened by anyone—parents, guardians, grandparents and others, and can be funded now or later. This trust does not need to be funded by today’s dollars.Sponsors can fund the trust through comprehensive estate planning in their Will or using life insurance proceeds.

Trust funds can be used for virtually anything that helps enrich the beneficiary’s life from medical expenses that Medicaid or other insurance does not cover to daily living expenses, recreational activities and vacations. These funds supplement government benefits programs such as Medicaid and SSI. The individual with disabilities will not lose services or benefits due to funding a trust to meet maximum income or resource requirements.

Third-Party Pooled trusts benefit other siblings or loved ones when the beneficiary passes on and leaves a legacy to the organization. This particular option is only available with the Third-PartyTrust.

Surplus Income Trust

A Surplus Income Trust from Life’s WORC allows you to earn money while protecting your benefits. With a Surplus Income Trust, you can deposit excess income over the allowable income limit set by Medicaid into the trust for monthly living expenses instead of paying it to Medicaid. This trust works well for employed people with disabilities as well as retired seniors needing support at home.

This trust is open to qualified individuals with disabilities. Only individuals who meet the criteria for disability defined in Social Security Law Section 1614(a)(3)[42USC 1382c(a)(3)] are eligible.

Surplus Income Trusts enable the individual to remain eligible for Medicaid home care services. Without the trust, individuals must contribute any excess income toward their Medicaid services. The Life’s WORC Surplus Income Trust is established pursuant to federal and state laws that permit a disabled person to shelter their own income in order to remain eligible for government benefits that are subject to means tests.