What is a Pooled Trust ?

September 09, 2024   144

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A pooled trust is an irrevocable trust that allows individuals with disabilities and older adults in New York to retain eligibility for means-tested government benefits like Medicaid and Supplemental Security Income (SSI) by placing excess assets into a shared, managed trust.

Understanding Pooled Trusts

Pooled Trusts, under Sections 1917(d)(4)(A) and (C) of the Social Security Act, offer a practical solution for beneficiaries to manage their financial assets without compromising their eligibility for government assistance. These trusts are unique as they pool the resources of many beneficiaries, which are then managed by nonprofit organizations.

Types of Pooled Trusts

There are primarily two types of pooled trusts:

• First-Party Pooled Trusts: Funded with the assets of the individual receiving benefits.
• Third-Party Pooled Trusts: Funded with assets from another person, like a family member, not the beneficiary.

Benefits of a Pooled Trust

• Maintain Eligibility for Benefits: By not counting the trust assets as part of the individual's resources for Medicaid and SSI.
• Flexible Management of Assets: Funds can be used to pay for expenses not covered by government programs, enhancing the beneficiary's quality of life.
• Cost-Effective: Less expensive to establish and maintain compared to individual special needs trusts.

How Does a Pooled Trust Work?

When you transfer assets into a pooled trust, the funds are combined with those of other beneficiaries but managed separately for each account. This collective approach allows for more significant investment opportunities and reduces management costs.

Setting Up a Pooled Trust in New York

1. Choose a Trust: Select a pooled trust managed by a reputable non-profit organization in New York.
2. Contribute Assets: Transfer your excess assets into the trust. This can include cash, stocks, or other financial resources.
3. Use Funds: The trustee will disburse funds to pay for eligible expenses, such as personal care, medical bills not covered by Medicaid, and other living expenses.

Case Example: Utilizing a Pooled Trust for Home Care Services

Scenario: Maria, a 70-year-old resident of Brooklyn, receives a pension that disqualifies her from Medicaid due to high income. She needs home care services, which are not entirely covered by her pension.

Solution: Maria transfers part of her excess monthly income to a pooled trust. This action reduces her countable income, making her eligible for Medicaid. The funds in the trust are then used to pay for additional home care services provided by Prolife Home Care Agency, ensuring she receives comprehensive care without financial strain.

Why Choose Prolife Home Care Agency?

Prolife Home Care Agency partners with pooled trusts to ensure that beneficiaries can afford the home care they need without losing their benefits. Our dedicated team works with trust administrators to seamlessly manage care payments and services, tailoring care plans to meet individual needs.

Conclusion

Pooled trusts offer a flexible and secure way for New Yorkers with disabilities and older adults to manage their assets and maintain eligibility for crucial government benefits. By understanding and utilizing a pooled trust, you can ensure your financial security and receive the necessary care and support.

Contact Us

For more information on how a pooled trust can benefit you or to discuss your home care needs, visit Prolife Home Care Agency or contact our specialists today at (718)232-2777