Settlement Preservation Pooled Trust (SPPT)
A Settlement Preservation Pooled Trust (SPPT) is a trust arrangement designed for a minor who does not have a disability or a vulnerable adult aiming to safeguard and manage funds received from a settlement or court award while preserving the individual's assets.
It is not required that the beneficiaries have a disability, as this type of trust operates under a health, education, maintenance, and support (HEMS) distribution standard and does not provide protection for government means tested benefits, such as Medicaid and SSI.
Joining Documentation
What is a Settlement
Preservation Pooled Trust?
In this insightful video, discover the remarkable benefits of our Settlement Preservation Pooled Trust. Join our Counsel & Director of Client Services, Ben Tiefenback, as he delves into the details and advantages of this valuable resource.
Funding the Sub-account
Funds used to establish the trust must be from a settlement or court award to the Beneficiary. CCT has a minimum of $8,000 and no maximum amount needed to fund the trust. CCT accepts cash assets or structured settlement payments for deposit into the trust; no real estate and non-cash assets can be accepted. Once funded, the trust is irrevocable.
How Funds in the Trust Can Be Used
Based on the terms of the Master Trust Agreement, CCT has the discretion to decide when to approve a disbursement request unless it is required by court order. All disbursement requests are evaluated through the lens of CCT’s fiduciary duty to its Beneficiaries, and through the
Health, Education, Maintenance and Support (HEMS) standard. For more information, see our Disbursement Information Manual.
Disbursement requests are reviewed and approved based on the following criteria:
- Is the request for the benefit of the Beneficiary?
- Is the request related to HEMS - health, education, maintenance and support of the Beneficiary?
- Are there adequate funds in the trust to cover the request?
- Is the request prudent?
- Was supporting documentation provided?
- For minors, see page 2 of CCT's Disbursement Manual for special considerations.
Additional Resources
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.
SPPT Remainder Policy
The Remainder Policy explains what happens to funds remaining in the trust upon the death of the beneficiary.
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 into a settltment preservation sub-account. 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 trusts.
Please click the button below to learn about our real estate program and guidelines.
Important Information
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 Settelment Preservation Pooled Trust Master Trust Agreement and the completed Joinder Agreement, which states what will happen to any remaining funds if the Beneficiary passes away.
Pooled Trust
A pooled trust refers to a unique trust structure when there is one Master Trust Agreement, but multiple beneficiaries that each have their own sub-account that is set up using a Joinder Agreement, the legal document to join the pooled trust. The funds in the sub-accounts are pooled only for investment purposes. Even still, the funds put into a Beneficiary’s sub-account are only used for that Beneficiary and the Beneficiary and their advocates have access to their balance and all disbursements through the CCT secure online portal or mobile app, or by mail upon request.
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.
Power of Appointment
The Grantor may give the Beneficiary a general power to appoint the remaining balance of the trust account to successors of his or her choosing upon reaching the age of majority. The Beneficiary may exercise it by submitting a signed and notarized form to CCT, designating who will receive the remaining balance on the Beneficiary’s death.
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
