WHAT IS A POOLED INCOME TRUST?
In order to be eligible for Medicaid, the Medicaid applicant must not earn more than a certain amount of income per month (the limit changes from time to time). If the Medicaid applicant makes even $1 more than the limit, the applicant is not eligible for Medicaid. However, by setting up a Pooled Income Trust, the Medicaid applicant can qualify for Medicaid.
The Pooled Income Trust creates a separate account managed by a charitable organization. The excess income of the individual is transferred to that separate account every month. The individual can then direct the charitable organization that manages the account to pay certain allowable expenses with the funds in that account.
HOW MUCH DOES A POOLED INCOME TRUST COST?
The Levin Law Group charges $1,000.00 for filling out the paperwork and setting up the account with the charitable organization. There are also ongoing monthly maintenance fees that the charitable organization charges to cover expenses.
WHAT ARE THE REQUIREMENTS OF A POOLED INCOME TRUST?
The following are basic requirements of the Trust:
- The Medicaid applicant must be disabled. For purposes of the Pooled Income Trust, “disabled” usually includes age related symptoms.
- The funds in the Pooled Income Trust must be used for the benefit of the Medicaid applicant.
- The funds can only be used for allowable expenses (see below).
- When the Medicaid recipient passes away, any remaining funds are forfeited.
WHAT ARE THE ALLOWABLE EXPENSES?
The following are allowable expenses that can be paid from the Pooled Income Trust:
- Clothing and Food
- Living expenses (mortgage, rent, real estate taxes, utilities, homeowner’s insurance)
- Travel expenses (car payments, gas, etc.)
- Attorney, accountant and guardian fees
- Supplemental home care services
- Geriatric care services
- Medical procedures not provided through government assistance
- Any other expense not provided by government assistance programs
IS THE POOLED INCOME TRUST THE SAME AS THE MEDICAID ASSET PROTECTION TRUST?
No. Medicaid eligibility has two financial requirements. The first requirement is that the assets of the Medicaid applicant not exceed a certain monetary limit (the limit changes from time to time). The Medicaid Asset Protection Trust assists with this first requirement. The second requirement is that the income of the Medicaid application be under a certain amount every month (the amount changes from time to time). The Pooled Income Trust assists with this second requirement.
ALL OF OUR MEDICAID SERVICES
- Medicaid Planning
- Medicaid Asset Protection Trust ($3,000)
- Pooled Income Trust ($1,000)
- Apply for Medicaid ($3,000)
- Medicaid Package ($5,000)
- Medicaid Spousal Refusal Letter ($500)
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