Pooled Trusts in Massachusetts

Braintree, Massachusetts · Nonprofit trustee since 1971

Keep MassHealth and SSI while protecting your savings

A pooled trust is a special needs trust run by a nonprofit that lets a person with a disability keep savings without losing MassHealth or SSI. Each person has a separate account, and the money is pooled only for investment. PLAN of MA & RI has managed the MARC Special Needs Pooled Trust, the oldest pooled trust in Massachusetts, since 1995.

Update for MassHealth applicants 65+

Since December 6, 2024, people 65 and older can fund a pooled trust with no MassHealth transfer penalty. Read what changed.

Oldest in Massachusetts

The MARC Special Needs Pooled Trust has been managed by PLAN since 1995.

Licensed social workers

Every beneficiary gets service coordination, included in the annual fee.

No minimum deposit

We recommend funding with at least $10,000 so fees stay proportionate.

7–10 day disbursements

Approved requests are typically paid within 7 to 10 days.

How a pooled trust works in Massachusetts

When someone needs MassHealth or SSI, they usually can’t have more than $2,000 in countable assets. A pooled trust holds their money instead, so it no longer counts against that limit, and it can still be spent for their benefit.

Federal law (42 U.S.C. § 1396p(d)(4)(C)) sets the rules. MassHealth accepts pooled trusts that meet them, and since December 2024 that includes people who fund the trust at age 65 or older.

Each beneficiary has a separate sub-account and can only use their own funds
Accounts are pooled for investment only, which lowers costs
The trust must be managed by a nonprofit organization
The trust is irrevocable, but funds can be transferred to another trust

Who qualifies

The beneficiary has a disability as defined by Social Security
The trust is for the beneficiary's sole benefit
It is set up by the individual, a parent, grandparent, guardian or court
The state is repaid from first-party funds after a charitable retained share

Not sure if you qualify? Read our special needs trust FAQ or book a consultation.

Pooled trust vs. individual special needs trust

	Pooled trust (PLAN)	Individual special needs trust
Trustee	A nonprofit with professional staff	A family member, attorney or bank you choose
Age 65 and over	Available for first-party funds	A first-party individual trust must be created before age 65
Account size	No minimum (PLAN recommends $10,000+)	Professional trustees often require large balances
Setup	Join an existing master trust with a joinder agreement	An attorney drafts a new trust document
Social work support	Licensed service coordinator included	Depends on the trustee

Two ways to fund a trust

PLAN's pooled trusts for Massachusetts

Funded with the beneficiary's own money

First-Party Pooled Trust

Part of the MARC Special Needs Pooled Trust, established in 1995. Used when the person with a disability receives money in their own name, such as:

When the beneficiary dies, PLAN retains a charitable share for its Community Fund (10% if within two years of joining, 20% after). The state Medicaid program is then repaid for benefits it paid, and anything left goes where the donor directed.

Funded by family or friends

Third-Party Pooled Trust

Established in 2005. Parents, grandparents and others use it to leave money for a loved one with a disability without affecting their benefits, through:

There is no Medicaid payback. Whatever remains after the beneficiary’s lifetime is distributed according to the donor’s wishes.

What it costs

Our annual fee covers everything: trust administration, social work support, disbursements and your annual statement. There are no per-request charges.

Fee	First-party pooled trust	Third-party pooled trust
Enrollment fee	$600–$750	$500
PLAN annual fee (administration, service coordination, disbursements, record keeping)	2% on the first $1,000,000; 0% on the balance over $1 million
Professional investment management	0.75% of the trust balance
Annual tax preparation	$231	$378
Account closing fee	$500	$500
Final tax preparation	$378	$378
Future-funded trusts	Accepted. Annual fees are waived until the account is funded.

Fees as of October 2026. See the full trust comparison for details.

How to open a pooled trust in Massachusetts

1. Free consultation

Talk with a PLAN specialist about benefits, funding and which trust fits. We serve Greater Boston, the North and South Shores, Central and Western Massachusetts, and Cape Cod.

2. Complete the joinder

Sign a joinder agreement to open a sub-account in PLAN's master trust, usually with help from your attorney. Apply online or use our forms.

3. Fund the account

Deposit settlement proceeds, savings or other assets. PLAN has no minimum deposit but recommends at least $10,000.

4. Meet your service coordinator

A licensed social worker gets to know the beneficiary and helps request disbursements, typically paid within 7–10 days.

Ready to start? Download the forms, see our attorney partners, or read how to set up a special needs trust.

Massachusetts pooled trust FAQ

Is there an age limit for a pooled trust in Massachusetts?

No. PLAN’s pooled trusts accept people of any age. Since December 6, 2024, MassHealth applicants 65 and older can fund a pooled trust without a transfer penalty. Read the update.

Will MassHealth take the money in a pooled trust?

Not during the beneficiary’s lifetime. With a first-party trust, after the beneficiary dies PLAN retains a charitable share, MassHealth is repaid for benefits it provided, and any remainder goes where the donor directed. Third-party trusts have no MassHealth payback.

What can a pooled trust pay for?

Trust funds can pay for things MassHealth and SSI don’t cover, such as dental care, therapies, transportation, education, recreation, clothing, furniture, technology and personal care. Your service coordinator reviews each request so spending doesn’t put benefits at risk. See disbursements from your trust.

Talk with our Massachusetts team

PLAN of MA & RI · 50 Braintree Hill Office Park, Suite 110, Braintree, MA 02184. Visits are by appointment.