for Individuals with
Guardian And Protective
are the Minnesota Supplemental Needs / Special Needs Pooled Trusts?
Federal Law and State Regulations allow individuals with
disabilities to set aside assets for supplemental/ special needs
into a Pooled Trust for the purpose of maintaining eligibility for
public assistance programs (i.e. Medicaid, SSI, Housing, VA). The
Pooled Trust is irrevocable and has been established by Guardian and
Protective Services, Inc. (GAPS), a non-profit association. A
separate account (sub-account) is maintained for each beneficiary in
the Trust but for purposes of investment and management of funds,
the Trust pools these accounts.
What Type of Assets can be used?
These assets can consist of savings, inheritances, gifts,
investments, real estate, insurance payments or settlements and
Social Security deferred payments.
How is a Pooled Trust established?
There are two types of Pooled Trusts:
Special Needs (Self Settled Trust)
Established with the assets of the individual who has the disability
by a parent, grandparent, guardian, court, or the individual.
Payback to State Medicaid is required after death.
(Third Party Trust) Established with the
funds of a third party grantor (parent, grandparent, or sibling.)
Not the person with the disability. Payback to State Medicaid after
death is not required.
How are the funds used?
The funds in the Pooled Trust can be used for
supplemental/special needs of the beneficiary not covered by
Medicaid or other public programs and when the purchase of or
payment for such items do not risk the beneficiary’s eligibility for
these programs. Supplemental/special needs items include:
Health and dental procedures and equipment for which there are not
funds otherwise available.
Rehabilitative and occupational therapy services, medical procedures
even though not medically necessary or life saving, medical
Supplemental nursing and home care, private case management,
supplemental dietary needs.
Travel, entertainment, companionship, cultural experiences,
vacations, visitation by friends and relatives.
Guardian, legal, and advocacy services.
How do the Minnesota Supplemental Needs / Special Needs Pooled
Decisions for payment to beneficiaries are made by Guardian and
Protective Services, (GAPS), the Trustee, according to the
requirements of the Trust Agreement. The Funds Manager, a bank trust
department, makes the investments. The Minnesota Supplemental Needs
/ Special Needs Pooled Trusts report to the Board of Directors of
Guardian and Protective Services.
Are there limitations to the Minnesota
Supplemental Needs / Special Needs Pooled Trusts?
The Trustee has total discretion over payment of the funds to the
beneficiary in accordance with the terms of the Trust. Payments may
not be made directly to the beneficiary. Upon the death of a
beneficiary of a Special Needs Pooled Trust (funded by the
individual), claims for reimbursement of Medicaid must be repaid to
the State before funds are distributed to the beneficiary’s estate.
Financial transfers to a Special Needs Pooled Trust may impact
eligibility for Basic Care of the Beneficiary.
What are the fees of the Minnesota Supplemental Needs /
Special Needs Pooled Trusts?
The Funds Manager charges an annual investment fee. The Trustee
charges a one-time enrollment fee and hourly fees for services
What are the advantages of the Minnesota Supplemental Needs /
Special Needs Pooled Trusts?
The sub-accounts are pooled into one account managed by a bank
trust department that allows for a higher rate of return than would
be possible if funds were invested separately. Some banks are
reluctant to administer small trusts and may charge fees that small
trusts are unable to pay. Banks generally are not involved with the
regulations for public assistance programs such as Medicaid, SSI,
and housing programs.
For further information contact:
Guardian and Protective Services, Inc.
325 South 7th
Street, Suite 101
Fargo, ND 58103
Office phone: (701) 297-8988
Toll Free: (866) 798-4277
Fax: (701) 451-9203
National Guardianship Association (NGA)
Minnesota Association for Guardianship & Conservatorship (MAGiC)
further information Contact