What is a Pooled Income Trust?
Medicaid planning is something that nearly everyone in Connecticut who is working on an estate plan should consider. For Connecticut residents in their 40s and 50s, planning ahead can be crucial. And if you have an elderly loved one who currently needs long-term care, you can begin working with an elder law attorney in Connecticut to find out about options for their Medicaid eligibility. For those with a parent currently in need of long-term care who does not want to have to spend down all of their savings, one option you might have come across is something called a pooled income trust.
What is a Pooled Income Trust, who can create one, and how does it help older adults with Medicaid coverage? Consider the following information from our Connecticut elder law and estate planning firm.
What is a Pooled Income Trust?
A Pooled Income Trust is a specific type of trust for disabled older adults in Connecticut who are currently over the age of 65, and who want to become Medicaid-eligible without having to spend down excess income.
Instead of spending down countable income, it may be possible for an older adult in need of long-term care due to a disability to put their additional income — any amount over the qualifying limit for Medicaid — into a Pooled Income Trust for their own benefit and while then qualifying for Medicaid. It is essentially a type of a Special Needs Trust that the disabled older adult can create for themselves and for their benefit. The money in this account will not be counted toward Medicaid eligibility. However, in order for this type of trust to work, the disabled older adult must designate Connecticut Medicaid as the beneficiary of remaining funds up to the cost of what was paid for their long-term care.
Who Should Consider a Pooled Income Trust?
Any disabled older adult over the age of 65 who is in need of long-term care but has income or assets over the Medicaid eligibility limit may want to consider a Pooled Income Trust.
This type of trust can shelter income from an inheritance, for example, or from another kind of windfall payment.
If a Pooled Income Trust is not right for you or for your elderly parent, there are many other Medicaid planning options that a lawyer can discuss with you.
Contact a Canton Elder Law Attorney for Assistance
Medicaid planning is an important component of estate planning for most people in Connecticut. While you might be assuming that you will not need Medicaid because you currently earn a good salary, or because you do not expect to need nursing home care, it is important to be realistic and to understand that a majority of seniors who require long-term care will want to have that care covered by Medicaid. Further, as we noted, more older adults than you might think do require nursing home care at some point in their lives. Accordingly, it is a good idea to plan ahead.
Whether you want to find out more about a pooled income trust for your elderly parent or you want to consider other Medicaid planning strategies for yourself, an experienced Canton elder lawyer at the Law Office of Brian S. Karpe can speak with you today. Contact us for assistance with all of your Medicaid and estate planning needs.
Sources:
aoascc.org/Customer-Content/www/CMS/files/info_library/PLAN-Pooled-Trust.pdf
ssa.gov/ssi/spotlights/spot-trusts.ht
