The ARC Master Pooled Trust
The ARC Master Pooled Trust (“MPT”) is a supplemental needs trust which pools the assets of beneficiaries for investment and management purposes and establishes sub-accounts for individual beneficiaries. Pooling assets enables the trustee to make larger investments, increasing the potential return for the beneficiaries. The ARC of Texas manages the MPT and JP Morgan Chase serves as the trustee.
The Arc is a known and trusted organization, having served people with disabilities for over 60 years. The ARC knows trust laws and governmental requirements, and how best to serve the needs of people with disabilities. The costs associated with establishing and managing the MPT are much lower as compared to that of a §1301 Trust or guardianship estate. What is more, the ARC MPT will take any size sub-account, there is no minimum investment required. Finally, beneficiaries of the ARC’s MPTs enjoy the security and benefits associated with a major trust company’s management of trust assets.
The ARC’s MPT may take the form of a self-settled trust or a third party settled trust. When an MPT is settled by the beneficiary, the funding sources often include back disability payments, personal injury settlements, inheritances, or savings accounts. Upon the beneficiary’s death, any assets remaining in the trust must be used to reimburse Medicaid for expenditures Medicaid made on behalf of the beneficiary.
When a third-party seeks to establish an MPT for the benefit of a beneficiary with special needs, funding sources most often include a bequest in such third-party’s will or life insurance proceeds on such third-party’s life. No Medicaid payback provisions apply to MPTs settled by third-parties.