Q: What is meant by a "pooled" or "community" trust?

A: Each beneficiary has his/her own separate sub-account. For purposes of investment, the assets are deposited for the beneficiary are combined or "pooled" with assets deposited for other beneficiaries. This enables the Trustee to charge lower fees and can result in a higher rate of return than separately managed trusts.

Q: Who may deposit/leave assets to the trust?

A: Generally, there are two (2) types of trusts, third-party and beneficiary funded. Third-party trusts accept assets that are not/have not been assets of the beneficiary with a disability. Third-party donors/creators include parents, other family members, and friends. Beneficiary funded trusts receive assets belonging to the beneficiary with a disability and often require court orders to create the trust sub-account or transfer funds to it.

Q: What happens to the assets after the beneficiary's lifetime?

A: The answer depends upon the type of trust. Third party trusts generally pay remainder, if any, to the designated beneficiary(ies) named in the Contribution Agreement. Beneficiary funded trusts are required to reimburse (Pay back) any state that provided Medicaid benefits to the beneficiary during his/her lifetime. If additional assets remain, the beneficiaries named in the contribution agreement will receive their share

Q: Does the amount deposited determine how much is spent annually?

A: The amount in the trust is a guide for the Trustee to make distributions. Distributions are usually made in response to a request from the Advisor named in the Contribution Agreement and/or the Beneficiary.

Q: What is meant by the term "discretionary trust"?

A: Disbursement decisions are at the Trustee's discretion, with advice and consultation from WISPACT, Inc. If the Trustee did not have such discretion, a court might rule that the assets in trust must be used in place of public benefits.

Q: Can the Trust pay for funeral expenses?

A: It depends on the type of trust. No, not for beneficiary funded pooled and payback trusts. Third party trusts may make distributions for funeral expenses because no payback is required to the state.