What is a Pooled Income Trust and How Do I qualify in New York State?
While it is true that you can divest yourself of all assets and be eligible the following month for Medicaid Home Care benefits, until recently, Medicaid recipients were required to contribute their “surplus” income to Medicaid before they would receive benefits. Specifically, an individual is only entitled to keep a maximum income allowance each month and any monthly income over this amount must be “spent down“ before Medicaid will pay for the individual’s care.
However, qualified elderly and disabled individuals in need of home care or community services can now use all of their excess income to pay for their living expenses by participating in a Pooled Income-Only Trust.
Pooled Income-Only Trusts are a type of Special Needs Trust that are established and managed by not-for-profit charitable organizations. Elderly and disabled participants contribute their excess income to the Pooled Income-Only Trust to be managed along with other participant’s living expenses, including mortgage payment, rent, food, utilities, recreational activities, clothing, etc.
Like all Special Needs Trusts, disbursements from the trust are not issued directly to the individual but rather to the provider of the item or service (landlord, mortgagor, retailers, vendors, etc.).
All individuals who qualify as disabled pursuant to Social Security Laws are eligible to establish a Pooled Income-Only Trust. Pooled Income-Only Trusts allow a qualified individual to retain all of his or her income while remaining eligible for Medicaid community benefits.
Our ElderCare Planners of Long Island, NY are available to counsel and assist you with regard to your eligibility, the completion and execution of the required enrollment forms, funding the trust, and compliance with Medicaid rules to properly avail the elderly/disabled beneficiary of the trust’s benefits. For more information, contact us today and we can help guide you in the right direction in implementing a Pooled Income Trust.