What happens to money remaining in a Pooled Trust subaccount after the beneficiary dies?
This depends on which pooled trust you established. With the MARC Special Needs Pooled Trust, which is self-funded, after a beneficiary dies, PLAN of Massachusetts retains 25% of the balance remaining after certain administrative expenses are paid. PLAN of Massachusetts uses this money for their charitable purposes. Because this is a Medicaid Pay Back Trust, Medicaid is entitled to be reimbursed from the balance then remaining for any services it made to the beneficiary during his or her lifetime. Any balance, after these payments, is distributed to the remainderpersons named in the Instrument of Trust Assignment. The PLAN of Massachusetts Third Party Special Needs Pooled Trust does not require that Medicaid be reimbursed or that PLAN of Massachusetts retain any portion of the balance remaining after the beneficiary’s death. The donor(s) name the remainderpersons who are to receive any balance remaining (after certain administrative expenses are paid) in the Joinder Agreement.
