The Theresa Foundation Pooled Trusts

Until further notice, the Theresa Pooled Trust is currently not accepting new Beneficiary Trust Applications.

If you are an existing Trust Beneficiary, your trust account will continue to be administered by The Center for Special Needs Trust Administration, Inc. at 727-894-4489.

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Glossary of Terms

Beneficiary

For purposes of Pooled Trusts, the person who benefits from a trust.  In order to qualify as a beneficiary of a Pooled Trust, the beneficiary must have a disability.

Executor/Executrix

A person or institution responsible appointed by a Testator to carry out the terms of their will. Their duties would include collecting, maintaining, and distributing the assets of an estate in accordance with the terms of the will.

Grantor

A grantor is the person who creates and funds the trust, also commonly referred to as a “settlor”, “donor” or “trustor”. A Grantor may also be the beneficiary of a Pooled Trust. 

Joinder Agreement

The legal document that is executed by the grantor to establish an account with certain pooled or community supplemental needs trusts.

Means Tested Benefits

Benefits that are only available to individuals whose income and/or assets are below a certain qualifying level. Supplemental Security Income (SSI) and Medicaid programs are means tested programs.

Medicaid

A federal health insurance program that provides coverage for people aged 65 and older, people under 65 with certain qualifying disabilities or conditions.

Medicare Set-Aside (MSA)

A financial agreement that allocates a portion of a workers’ compensation or personal injury liability settlement to pay for future medical services related to the individual’s injury which resulted in a settlement. These funds must be depleted before Medicare will pay for treatment related to the injury which resulted in the settlement.

Payback Trust

In the case of First-Party Special Needs Trusts and certain Pooled Trusts, states may have the right to be reimbursed for the amount of paid Medicaid benefits on behalf of the beneficiary. In almost every case, these types of trusts must contain payback provisions in order for the beneficiary to qualify for certain government benefits due to excess resources. Any remaining trust assets in excess of the payback amount may be distributed as designated within the trust document when the trust is set up.

Pooled Trust

Also known as a (d)(4)(C) trust, a pooled trust uses first- or third-party assets to establish an account for the beneficiary within a larger trust. This trust pools assets from multiple beneficiaries and is administered by a nonprofit organization. A pooled SNT has a master trust agreement which a beneficiary or the trust grantor may use through a joinder agreement.

Remainder Beneficiary

When a trust ends (usually upon the beneficiary’s death), the remainder beneficiaries are the individuals who will receive any remaining trust assets.

Self-Settled Trust

A type of in which the beneficiary’s own assets are used to fund the trust.

Social Security Law SECTION 1614(A)(3) [42 USC §1382C(A)(3)]

This is the section of federal law that essentially defines “disabled.” To summarize, a person is disabled under this law if, because of an anatomical, physiological, or psychological abnormality that will last more than 12 months or will lead to eventual death, prevents that person from holding substantial gainful employment. It covers physical, intellectual, and developmental disabilities.

Successor Trustee

If the initial trustee is no longer able or willing to serve, a successor trustee is nominated to take over. Typically, this successor trustee must satisfy certain requirements before assuming the trustee role.

Supplemental Needs Trust

A trust that is funded by a third party for the benefit of a person with a disability. The assets of a supplemental needs trust are not considered as “available assets or resources” for the purpose of determining whether a person shall be eligible to receive governmental benefits. A Supplemental Needs Trusts may be funded by a third party, such as a parent, grandparent, friend or relative. This type of trust is commonly referred to as a “Third Party Supplemental Needs Trust.”

Testamentary Trust

This type of trust is created under a last will and testament and is not funded until the death of the person who created the will.

Testator/Testatrix

A person who made a Will.

Trust

A trust is a legal agreement whereby you give your money to another person or an entity, such as a bank, called a trustee. The trustee manages the funds for the benefit of a person called the beneficiary. A supplemental needs trust is a special type of trust that assists people with disabilities.

Trustee

A trustee is the person or entity who manages the trust assets and administers them according to the trust document.