Recently, we have been seeing more and more clients who are concerned with the possibility of them needing the long-term care and not being able to apply for Long-Term Care Medicaid due to the excessive monthly income or assets.
Of course, we all want to stay in the comfort of our houses for as long as we can. Unfortunately, many people had to move to the nursing homes and lost their hard-earned assets, as they were not eligible for Long-Term Care Medicaid Insurance and could not afford paying for home-care agency’s bills out of pocket.
What Is A Pooled Income Trust And Its Benefits?
The Pooled Income Trust option can help many disabled people, who are otherwise not eligible for Medicaid, to afford such care without bankrupting their families.
It further allows any disabled person to put the monthly funds and/or assets that are in surplus to the allowable Medicaid limit, into a special type of trust and become eligible for Medicaid Long Term Care Insurance. The money that was put aside in the Trust can be used to pay for the basic needs of a person, such as rent, mortgage or utility bills. Meanwhile, Medicaid will pay for the long-term care.
Pooled Income Trusts are managed by the non-profit organizations. Once the person dies, the money left in the Trust at the moment, most likely, will remain in that non-profit organization or will be claimed by Medicaid. However, in most cases, due to the specifics of the income trust, the amounts left are insignificant. Also, Pooled Trusts are not available in all states and, since they depend on Medicaid rules and regulations, Trusts effectiveness can vary from one state to another.
Moreover, there are several types of Pooled Income Trusts that can serve different purposes. Pooled Income Trust may not work for everyone or may require additional planning to accomplish the ultimate goal. Please consult an experienced trusts and medicaid planning attorney and have your situation assessed by a professional before applying for a Pooled Income Trust.