First Party Pooled Special Needs Trust (PSNT)

A First-Party PSNT is established with the beneficiary’s own funds, usually as a result of a personal injury or workers’ compensation award, inheritance left directly to the beneficiary, or Social Security back payment.

First-Party Special Needs Trust:  Joining Documentation

What is a First-Party

Pooled Special Needs Trust?

In this insightful video, discover the remarkable benefits of our First-Party Pooled Special Needs Trust. Join our Counsel & Director of Client Services, Ben Tiefenback, as he delves into the details and advantages of this valuable resource.

Third Party Special Needs Trust: A family is walking down a street holding hands in front of a house.

Real Estate

We are thrilled to be able to offer our clients’ families and loved ones the opportunity to transfer a home for the Beneficiary. We know this is such an important part of estate planning and providing for the Beneficiary’s future—a stable and familiar home.


Our New Client Team is ready to help you explore how this option can be incorporated into your estate plan. We are also accepting homes as part of transfers or decanting from existing special needs trusts.


Please click the button below to learn about our real estate program and guidelines.

First-Party Real Estate Guidelines

When an individual with a disability receives funds,

it is important to give thoughtful consideration to the following:

  • Does the individual with a disability receive Supplemental Security Income (SSI) and or Medicaid benefits now or is there a plan to apply in the future?

    If funds are received directly, the individual’s SSI and Medicaid eligibility could be jeopardized due to the $2,000 countable resource limit for SSI and some Medicaid programs. Funds placed into a First-Party PSNT will not be counted as a resource to the Beneficiary. 

  • Due to the nature of the individual’s disability, could the individual benefit from a trust administrator to help manage funds?

    CCT's First-Party PSNT provides fiscal oversight to ensure that the funds are used for the sole benefit of the Beneficiary, provides professional management and investment of funds, and can be used to enrich the quality of life for the Beneficiary. 



How Funds in the Sub-Account Can Be Used

The funds can be used to pay for expenses that will enhance the quality of life for the Beneficiary. For more information, see our Disbursement Manual.


Disbursement Manual

  • Disbursement requests are reviewed and approved based on the following criteria:

    • Is the request for the sole benefit of the Beneficiary? 
    • Are there adequate funds in the sub-account to cover the request?
    • Is the request prudent? 
    • What other income or resources are avaliable to the Beneficiary? 
    • Was supporting documentation provided?

  • Allowable expenses include, but are not limited to:

    • Medical and Dental Services not covered by insurance
    • Assistive Technology
    • Eyeglasses, Hearing Aids, and Prosthetic Devices
    • Pre-paid Burial Expenses
    • Computer and Internet Services
    • Education Expenses
    • Caregiver Expenses
    • Home Modifications
    • Clothing and Furniture

Additional First-Party Resources

Objectives of the Trust

The Objectives of the Trust form provides information about the beneficiary's needs for disbursements from the sub-account.

First-Party Remainder Policy

The Remainder Policy explains what happens to funds remaining in the sub-account upon the death of the beneficiary.

Beneficiaries 65 or Older

Attorneys working with clients who are establishing a sub-account for beneficiaries 65 years of age and older are asked to complete and submit this checklist to CCT.

CCT Trust IPS

The Investment Policy Statement (IPS) is carefully crafted and reviewed regularly by the CCT Board of Director’s Finance and Investment Committee.

Important Definitions

  • Pooled Trust

    A pooled trust refers to a unique trust structure when there is one Master Trust Agreement but multiple beneficiaries. The beneficiaries each have their own sub-account that is set up by completing the  Joinder Agreement, the legal document to join.  The funds in the sub-accounts are pooled for investment purposes. The Beneficiary and their advocate(s) have access to financial information through the CCT secure online portal, mobile app, and by mail upon request. 

  • Sub-Account

    A sub-account refers to the account holding funds for an individual Beneficiary.  Funds deposited into this sub-account are used solely for that Beneficiary.  The sub-account is governed by the terms of the CCT First-Party Pooled Special Needs Trust Master Trust Agreement and the completed Joinder Agreement, which states what will happen to any remaining funds if the Beneficiary passes away. 

  • Grantor

    Due to restrictions in federal law and regulations, a First-Party Pooled Special Needs Trust sub-account can only be set up by the Beneficiary themselves or their agent under a power of attorney with sufficient authority; their parent(s), grandparent(s), or legal guardian(s); or a court. 



  • Beneficiary

    The Beneficiary is a person with a disability for whom the sub-account was created and funded.  During the Beneficiary’s lifetime, the funds in the sub-account must be used for their sole benefit. 



  • Disability

    According to federal law, a Beneficiary must be considered disabled to be eligible to set up a first-party pooled special needs trust sub-account at Commonwealth Community Trust.

     

    An adult Beneficiary is considered disabled and is eligible for a first-party sub-account if they meet three criteria: (1) they have a medically determinable physical or mental impairment, (2) due to the impairment, the Beneficiary is unable to engage in any substantial gainful activity, and (3) the impairment has lasted or is expected to last at least twelve months or result in death.  42 U.S.C. § 1382c(a)(3)(A),(B)

     

    A minor Beneficiary is considered to be disabled and is eligible for a first-party sub-account if they meet three criteria: (1) they have a medically determinable physical or mental impairment, (2) the impairment results in marked and severe functional limitations, and (3) the impairment has lasted or is expected to last at least twelve months or result in death. 42 U.S.C. § 1382c(a)(3)(C)

     

    A determination by the Social Security Administration that a Beneficiary is disabled (an award of Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI)) means that the Beneficiary is automatically eligible for a first-party sub-account.  Otherwise, the Beneficiary and/or their family or attorney can confirm that the Beneficiary has a disability by providing written supporting documentation from a medical provider or other professional with the Joinder Agreement.

  • Joinder Agreement

    The Joinder Agreement, our legal document to join the pooled trust, establishes the sub-account for the Beneficiary and gives essential information about the Beneficiary and the sub-account. CCT has a sample Joinder Agreement that is helpful when completing a new Joinder Agreement. 

  • Advocate

    An Advocate is an important part of the Beneficiary’s team and works closely with CCT.  An Advocate is authorized to make disbursement requests by signing and submitting the Payment Request Form to CCT and may receive confidential financial information about the Beneficiary’s sub-Account. 

     

    The Beneficiary may be their own Advocate and CCT strongly recommends having multiple Advocates if that is possible. Advocates are usually named by the Grantor(s) on the CCT Joinder Agreement, and may be the Beneficiary, a Guardian, Conservator, Power of Attorney, family member, case worker, friend, and/or someone who is trusted and familiar with the needs of the Beneficiary.  Over time, Advocates can be added or removed by CCT in consultation with the other Advocate(s). 

     

    However, while CCT looks to the Advocate(s) for information regarding the Beneficiary, CCT has sole discretion to decide what distributions are in the Beneficiary’s best interest and permitted under the terms of the trust, as well as when to share information. 

Additional Definitions

Have questions?

If you have any questions about the process, please don’t hesitate to call our office at 804-740-6930 or email us at contact@trustCCT.org. Our staff is available to answer your questions Monday through Friday from 9:00 am to 5:00 pm ET.


Mailing Address:

Commonwealth Community Trust
P.O. Box 29408
Richmond, VA 23242-0408


First Party Special Needs Trust: A woman in a yellow vest is standing next to a green jeep.