2010 Pennsylvania Code
Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES
Chapter 77 - Trusts
7799.3 - Pooled trusts for persons with disabilities.

     § 7799.3.  Pooled trusts for persons with disabilities.
        (a)  Scope.--This section relates to pooled trusts.
        (b)  Organization of pooled trust.--
            (1)  A pooled trust shall be administered by a trustee
        governed by a board. The trust may employ persons as
        necessary.
            (2)  The members of a board and employees of a trustee,
        if any, shall stand in a fiduciary relationship to the
        beneficiaries and the trustee regarding investment of the
        trust and shall not profit, either directly or indirectly,
        with respect to the investment.
            (3)  A trustee shall maintain a separate account for each
        beneficiary of a pooled trust; but, for purposes of
        investment and management of funds, the trustee may pool
        these accounts. The trustee shall have exclusive control and
        authority to manage and invest the money in the pooled trust
        in accordance with this section, subject, however, to the
        exercise of that degree of judgment, skill and care under the
        prevailing circumstances that persons of prudence, discretion
        and intelligence who are familiar with investment matters
        exercise in the management of their affairs, considering the
        probable income to be derived from the investment and the
        probable safety of their capital. The trustee may charge a
        trust management fee to cover the costs of administration and
        management of the pooled trust.
            (4)  A board member shall disclose and abstain from
        participation in a discussion or voting on an issue if a
        conflict of interest arises with the board member on a
        particular issue or vote.
            (5)  No board member may receive compensation for
        services provided as a member of the board. No fees or
        commissions may be paid to a board member. A board member may
        be reimbursed for necessary expenses incurred which are in
        the best interest of the beneficiaries of the pooled trust as
        a board member upon presentation of receipts.
            (6)  The trustee shall disburse money from a
        beneficiary's account for the sole benefit of the
        beneficiary. A disbursement from a beneficiary's account must
        have a reasonable relationship to the needs of the
        beneficiary.
        (c)  Pooled trust fund.--Before the funding of a pooled
     trust, all liens and claims in favor of the Department of Public
     Welfare for repayment of cash and medical assistance shall first
     be satisfied. All money received for pooled trust funds shall be
     deposited with a court-approved corporate fiduciary or with the
     State Treasury if no court-approved corporate fiduciary is
     available to the trustee. The funds shall be pooled for
     investment and management. A separate account shall be
     maintained for each beneficiary, and quarterly accounting
     statements shall be provided to each beneficiary by the trustee.
     The court-approved corporate fiduciary or the State Treasury
     shall provide quarterly accounting statements to the trustee.
     The court-approved corporate fiduciary or the State Treasury may
     charge a trust management fee to cover the costs of managing the
     funds in the pooled trust.
        (d)  Reporting.--
            (1)  In addition to reports required to be filed under 15
        Pa.C.S. Pt. III (relating to partnerships and limited
        liability companies), the trustee shall file an annual report
        with the Office of Attorney General and the Department of
        Public Welfare, along with an itemized statement which shows
        the funds collected for the year, income earned, salaries
        paid, other expenses incurred and the opening and final trust
        balances. A copy of this statement shall be available to the
        beneficiary, settlor or designee of the settlor upon request.
            (2)  The trustee shall prepare and provide each settlor
        or the settlor's designee annually with a detailed individual
        statement of the services provided to the settlor's
        beneficiary during the previous 12 months and of the services
        to be provided during the following 12 months. The trustee
        shall provide a copy of this statement to the beneficiary
        upon request.
        (e)  Coordination of services.--
            (1)  The Department of Public Welfare shall review and
        approve the pooled trust of an applicant for medical
        assistance.
            (2)  In the determination of eligibility for medical
        assistance benefits, the interest of a disabled beneficiary
        in a pooled trust that has been approved by the Department of
        Public Welfare shall not be considered as a resource for
        purposes of determining the beneficiary's eligibility for
        medical assistance.
            (3)  No State agency may reduce the benefits or services
        available to an individual because that person is a
        beneficiary of a pooled trust. The beneficiary's interest in
        a pooled trust is not reachable in satisfaction of a claim
        for support and maintenance of the beneficiary.
        (f)  Notice.--The Office of Attorney General and the
     Department of Public Welfare shall make available information on
     the treatment of pooled trusts for the persons with disabilities
     in the medical assistance program.
        (g)  Applicability.--This section shall apply to all of the
     following:
            (1)  Pooled trusts established after March 8, 2003.
            (2)  Accounts of individual beneficiaries established
        after March 8, 2003, in pooled trusts created before March 9,
        2003.
        (h)  Definitions.--As used in this section, the following
     words and phrases shall have the meanings given to them in this
     subsection:
        "Beneficiary."  An individual with a disability who has the
     right to receive services and benefits of a pooled trust.
        "Board."  A group of persons vested with the management of
     the business affairs of a trustee.
        "Disability."  A physical or mental impairment as defined in
     section 1614 of the Social Security Act (49 Stat. 620, 42 U.S.C.
     § 1382c).
        "Pooled trust."  A trust which meets all of the following:
            (1)  The trust contains assets of more than one
        beneficiary.
            (2)  Each beneficiary has a disability.
            (3)  The trust is managed by a nonprofit corporation.
            (4)  A separate account is maintained for each
        beneficiary of the trust, but, for purposes of investment and
        management of funds, the trust pools these accounts. Accounts
        in the trust may be established by the parent, grandparent or
        legal guardian of the individual with a disability, by the
        individual with a disability or by a court.
            (5)  Upon the death of a beneficiary or upon the earlier
        termination of the trust, amounts remaining in the
        beneficiary's account must be distributed in accordance with
        one of the following:
                (i)  The trust may retain up to 50% of the remaining
            balance for the benefit of other beneficiaries. The
            remaining 50% of the balance must be reimbursed to the
            Commonwealth and any other state that provided medical
            assistance up to an amount equal to the total amount of
            medical assistance paid on behalf of the beneficiary.
                (ii)  The amounts must be used to reimburse the
            Commonwealth and any other state that provided medical
            assistance up to an amount equal to the total amount of
            medical assistance paid on behalf of the beneficiary.
        "Trustee."  A nonprofit organization that manages a pooled
     trust.

        Special Provisions in Appendix.  See section 15 of Act 98 of
     2006 in the appendix to this title for special provisions
     relating to consolidation of Pooled Trust Act.