The Omnibus Budget Reconciliation Act of 1993 (OBRA 1993) is the Federal Law that allows for the creation of pooled trusts such as the Settlement Solutions National Pooled Trust. The federal statute permitting Pooled Trusts is 42 U.S.C. 1396p (d)(4)(C). It reads:
(C) A trust containing the assets of an individual who is disabled (as defined in section 1382c (a)(3) of this title) that meets the following conditions:
(i) The trust is established and managed by a non-profit association.
(ii) A separate account is maintained for each beneficiary of the trust, but, for purposes of investment and management of funds, the trust pools these accounts.
(iii) Accounts in the trust are established solely for the benefit of individuals who are disabled (as defined in section 1382c (a)(3) of this title) by the parent, grandparent, or legal guardian of such individuals, by such individuals, or by a court.
(iv) To the extent that amounts remaining in the beneficiary’s account upon the death of the beneficiary are not retained by the trust, the trust pays to the State from such remaining amounts in the account an amount equal to the total amount of medical assistance paid on behalf of the beneficiary under the State plan under this subchapter.
Did You Know?
The State of Florida has incorporated the Federal Law into the Economic Self-Sufficiency Manual at section 1640.0576.08. This is the Manual state workers use to determine eligibility for Florida Public Assistance Programs.
The Manual states:
A trust containing the assets of an individual who is disabled, if:
- it was established on or after 10/01/93;
- the trust is established and managed by a nonprofit association;
- a separate account is maintained for the beneficiary of the trust but, for purposes of investment and management, the trust pools the accounts;
- the trust is established solely for the disabled individual by a parent, grandparent, legal guardian, court or the individual himself; and
- to the extent that amounts remaining in the trust upon the individual’s death are not retained by the trust, the trust pays to the state an amount equal to the total amount of medical assistance paid on behalf of the individual.
Settlement Solutions National Pooled Trust beneficiaries may be any age but must be disabled. However, there does not need to be a formal determination of disability by Social Security.