10:38
Very happy with LR other than having to guess on a couple questions cuz of time
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Simple English definitions for legal terms
pooled trust
Read a random definition: ante mortem
A quick definition of pooled trust:
A pooled trust is a type of trust where multiple people's assets are combined and managed by a non-profit organization. This is often used by people with low income or special needs to have assets that don't affect their eligibility for government programs like Medicare or Supplemental Security Income. The non-profit manages the assets and distributes them periodically to the individual. When the individual passes away, any Medicare benefits received must be repaid from the remaining assets before beneficiaries can receive anything. Third-parties can contribute to the trust, and these assets are not used to repay Medicare benefits. A pooled trust can also refer to a trust managed by a non-profit organization to benefit the organization after the individual passes away. This structure can have tax benefits for the individual and increase the benefits to the non-profit organization than a normal trust may.
A more thorough explanation:
A pooled trust is a type of trust where assets from multiple individuals are combined and managed by a non-profit organization. This type of trust is often used to benefit those with low income or charities.
- For individuals receiving Medicare or Supplemental Security Income (SSI), a pooled trust allows them to have assets that do not affect their eligibility for these programs. The assets are managed by a non-profit organization, and as long as certain rules are followed, they will not be counted towards income limits. This can be helpful for individuals with special needs who inherit assets and want to avoid triggering any limits.
- Non-profit organizations may also create pooled trusts to increase their income. Individuals can have their trust managed by the organization and receive benefits for life, with the assets going to the organization after they pass away. This structure can have tax benefits for the individual and reduce management fees of assets.
Both examples illustrate the concept of a pooled trust, where assets from multiple individuals are combined and managed by a non-profit organization. This can provide benefits such as avoiding income limits for government programs or increasing income for a non-profit organization.