Update on Pooled Trusts for Individuals Age 65 and overDate posted: May 31, 2023
A Special Needs Trust is a legal document that allows assets to be set aside for the sole benefit of a person with special needs. It will preserve a beneficiary’s access to public benefits and can be used to supplement those public benefits. A Special Needs Trust can take the form of an individual (first party or third-party trust) or a pooled trust (first party or third-party trust).
MassHealth has recently announced a significant change to their policy regarding the use of pooled trusts.
Effective March 1, 2024, applicants, age 65 and over, who place funds in a pooled trust account will now be subject to a penalty period.
This change is quite unfortunate, as a pooled trust was the only vehicle for disabled individuals, age 65 and over, to establish a Special Needs Trust and to pay for expenses not covered by MassHealth.
Please see link below from the Commonwealth of Massachusetts for specific details: