An eighty-year-old mother wished to divide her estate equally between her three children. One of her daughters is developmentally disabled and currently resides in a group home. The mother's other children are living in different states and have family responsibilities, including raising their own children.
The parent was well aware of the fact that her disabled daughter would not be able to rely on an agency or other family members to fund all of her needs and ensure her quality of life after the parent passed away.
Consequently, she set up a Third-Party Pooled Trust (PT1) to provide for her disabled daughter's supplemental needs. The mother indicated that upon her daughter's passing any remaining funds would be inherited by her surviving siblings.
Knowing what made her daughter happy, the mother specified in the trust documents that the majority of funds should go toward extra clothing, enhanced recreation, and vacations. Above all, however, the mother wanted her daughter to have money to purchase gardening items, since this was her daughter's passion. The daughter's government benefits, including Medicaid, are unaffected and remain in effect.