A pooled trust is a type of trust arrangement in which multiple persons or parties “pool” together their resources into an umbrella trust account.  Each person will be granted access to their own funds through a “sub-account”, which allows them to retain some amount of control over their assets.  This may be done mainly for administrative orderliness, as well as for various tax breaks and benefits associated with the mechanism.

Pooled trusts are generally established and maintained by non-profit organizations.  In other words, a person usually chooses to opt-into an already existing pooled trust.  There are various different pooled trusts for persons to choose from.  They usually focus on retirement needs. 

What are Some Requirements for Forming a Pooled Trust?

Some requirements of pooled trusts may include:

  • The pool trust should be established/maintained by a valid non-profit organization
  • Each individual is entitled to their own separate sub-account, which can only be used for their benefit
  • The sub-account may be created by the person themselves, or by a parent/grandparent/guardian
  • The trust will pay the stated amount that remains in the trust upon the person’s death

Thus, a pooled trust must follow these requirements and characteristics in order for the person to obtain the benefits and advantages associated with the pooled trust.  Pooled trusts are common for spendthrift trusts and charitable trusts.

What happens if I Have a Dispute Over a Pooled Trust?

Unlike other types of trusts, pooled trusts tend to be well-established and well-maintained by a legitimate organization.  This means that there tends to be fewer reasons for a trust dispute to arise.  However, trust disputes can sometimes arise, especially if there is any mistake, error, misrepresentation, or fraud involved.  Various pooled trust scams exist, as such trusts usually involve participation by elderly or incapacitated persons.  As such, it’s important to only work with pooled trusts that are founded by reputable organizations. 

Do I Need a Lawyer for Help With a Pooled Trust?

You may wish to hire a qualified estate lawyer in your area if you need help or advice regarding a pooled trust.  Your lawyer can inform you of how such trusts work, and can assist you during the initial phases of the trust formation.  Also, if you encounter any legal issues or disputes, you can hire a lawyer near you for representation during court if you need to file a lawsuit.