Setting up a pooled income trust is an option for those in need of home care Medicaid in New York to ensure they can preserve excess income and maintain access to Medicaid. People in need of Medicaid who have over the threshold income limit can deposit excess monthly income into a pooled income trust to be held by a third-party organization or foundation.
This pooled income trust can be used to cover expenses like housing, food, transportation and any other daily needs. If you anticipate receiving Medicaid benefits in the near future, setting up a pooled income trust can help you to qualify for those benefits while still having access to your funds.
What is a pooled income trust?
A pooled income trust is a form of charitable trust created by a private foundation or qualified non-profit organization. One can submit bills for eligible expenses and purchases to the trustee of the pooled income trust to have the trust pay for those expenses. Some non-profit organizations give the individual access to a debt card to pay for expenses directly from the trust. An estate planning attorney in our office can provide you with a list of commonly used pooled income trust organizations.
A pooled income trust can be set up by a low-income individual or a guardian, or power of attorney on their behalf. If you are setting up the trust on behalf of another individual, they must be competent and understand the agreement.
How can you set up a pooled income trust?
Setting up a pooled income trust in New York is a relatively simple process. To begin, you will need to contact a financial advisor or an attorney who specializes in estate planning. They will be able to provide you with the guidance and advice you need to understand the legal documents required. They will also help you ensure that your trust meets all the requirements and regulations.
By following this process, people with limited incomes in New York can secure access to money for essential living costs, as well as guarantee that they keep their Medicaid eligibility.