Update on Pooled Trusts for Individuals Age 65 and over

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:

  https://www.mass.gov/doc/eom-23-15-eligibility-changes-concerning-transfers-to-pooled-trusts-0/download