Under current Federal Law, any assets held in Trust will be counted against recipients of public benefits when those benefits have asset and income limits. Any portion of the trust funds that can be reached will be counted as an asset, and any portion of the interest that could be paid out will be counted as income. The result is that a recipient of public benefits will be disqualified and their benefits cut off. In the case of someone who is applying for benefits, the application for public benefits will be denied.
In contrast to the above, Federal Law creates a specific exception to the rules that normally apply to trusts. Pursuant to this exception, the recipient or applicant who places assets in The Florida Pooled Trust will not be subject to the rules that normally apply to trusts. Trust assets will not be counted as an available resource, nor will interest on the assets be counted as income.
The end result is that a Beneficiary of The Florida Pooled Trust can continue receiving public benefits for meeting essential needs and still have resources available for their special, or supplemental, needs.
