Depending on the amount to the settlement proceeds, the costs of establishing a special needs trust may be prohibitive. A pooled trust may provide a more cost-effective alternative.
Overview of Pooled Trusts
Pooled trusts are most frequently established by non-profit organizations, which also handle trust administration. There are several key elements and advantages of pooled trusts:
- Typically offered by non-profit organizations
- Each beneficiary opens a sub-account in the master trust
- Sub-accounts are pooled together for investment purposes, allowing more payees to enjoy the benefits of professional trust management services
- Organizations may focus on certain states or regions of the country
Certain services are made available to all participants in the pooled trusts, and certain other efficiencies may be achieved, all with the goal of making the optimal trust solution affordable and available for the beneficiary. Pooled trusts are usually IRC 501(c)(3) tax-exempt charitable organizations and may be state-specific in their scope.
High-Quality Trust & Settlement Solutions
Structures’ Trust Solutions Platform has partnered with leading pooled trust providers from across the nation, providing settling parties with an effective solutions to meet their needs.
Our programs are flexible, and we are available to provide guidance on a variety of financial planning matters, including settlement and trust solutions. Our full-service support team is fully committed to providing the highest level of service to our clients across the country.
Contact us to learn more about pooled trust solutions.