Frequently Asked
Questions

A pooled trust is a creature of federal disability law, authorized by Congress under 42 U.S.C. section 1396p(d)(4)(C). Before this law was enacted, disabled persons who received personal injury settlements, inheritances, or windfalls risked the loss of essential government benefits such as Supplemental Security Income (SSI) and Medicaid. In some cases, disabled persons actually gave away their money to avoid losing their government benefits. Congress therefore stepped in and authorized non-profit associations like Vista Points Tennessee Pooled Trust, to create trusts to which the funds are transferred. The Trust administers the money for the benefit of a person living with a disability (called the “beneficiary”).

There is no payback to the government of money that other people, including the disabled child’s parents, transfer to the Trust for the benefit of a disabled family member. Payback is required only if the assets that are transferred to the Trust are owned by the beneficiary, such as a personal injury settlement or inheritance.

This is true, and there is a catch — two of them, actually. First, the trust money no longer belongs to the beneficiary. Once the beneficiary transfers his money to the trust, he cannot change his mind and ask for the money back. The money belongs to the Trust, which is required by law to distribute the money to or for the beneficiary’s best interests, subject to certain limitations.

Second, at the death of the beneficiary, any money that remains in the trust account established with the beneficiary’s money is paid to the State as reimbursement for any Medicaid benefits the State has paid out on behalf of the beneficiary. (Note: this applies to Medicaid benefits only, not SSI benefits.) After “Medicaid payback,” any remaining trust money will be given to persons designated by the beneficiary, such as other family members. The beneficiary can request that the State not be paid back, however. Instead, the beneficiary may allow the Trust to keep the money, but the Trust must use the retained money for the benefit of other disabled persons. The retained money will not be paid back to the government.

Springtime brings many potential environmental disasters to the forefront.
Planning ahead can help people living with a disability to know that if a
disaster hits, their special needs trust may be able to help. Trust funds can
be used to pay for clothing, medical needs not covered by government
benefits, electronic equipment such as a cell phone, I-pad or computer,
durable medical equipment, and nonmedical care.

There are many possibilities for how trust money may be used but there are also guidelines that must be followed so as not to lose needed government benefits. Depending on a person’s age and personal needs, what is needed or desired can vary greatly. Some items or services that may be considered for payment from a trust are: electronic equipment, computers, I-pads, I-pods, nonmedical care, vacations, vehicles, clothing, home remodeling, alternative therapies, massages, cleaning services and medication not covered by healthcare or government benefits.