Nursing home and long-term care costs are very high. It becomes a problem for senior citizens to look forward to without feeling agony about how badly the costs will affect their hard-earned assets. There is Community Medicaid to cater for your long term care, but it is only available to citizens whose estates worth less than $15,900 and earn below $884 monthly. So, if you own a little above that limit (informally called a surplus or spend-down), you would not qualify, and then your assets will be drained by your home care costs. To avoid that, many New Yorkers look towards Medicaid “spend down”, which means, spending the “surplus” assets so that what’s left is below the Medicaid limit.
However, not everyone would want to spend their money wastefully because they wish to qualify for Medicaid benefits. So what other way is there? The answer: Pooled Income Trust!
What is a pooled income trust and how does it work in Long Island?
A pooled income trust, also commonly called a pooled trust, is a type of Supplemental Needs Trust created for the benefit of disabled citizens. Stashing surplus excess assets in a pooled income trust can help a disabled individual qualify for Medicaid in Long Island because the assets in a pooled income trust are not counted by Medicaid.
In simple terms, you wouldn’t have to spend your excess income or assets to qualify for Medicaid; you can transfer them into a pooled income trust and use the assets while still enjoying Medicaid benefits.
Who is allowed to use a pooled income trust to qualify for Medicaid in Long Island?
People who are recognized by the state of Long Island or social security as disabled can used pooled income trust to qualify for Medicaid. For those who have not been previously identified as disabled, these ones would have to submit a document ascertaining their disability alongside their pooled income trust for Medicaid approval.
Note that people who already require home care services are regarded as disabled.
Who controls pooled income trusts?
Pooled income trusts are run by non-profit organizations for the benefit of disabled individuals.
Do I keep funding the pooled income trust with assets continually?
Notably, Medicaid eligibility is determined on a monthly basis. You may be eligible this month but become ineligible next month because you later earn more than you are earning now. That is why you have to continue transferring your surplus assets into the pooled income trust continually.
What is the money kept in a pooled income trust spent on?
Funds in a pooled income trust are used to pay the bills of the disabled individual. Money is deposited into the account of the Pooled income trust’s member, and the money will then be used to pay bills – such as rent – on behalf of that member. An employee working at the pooled income trust will make the payment on behalf of the member.
If any bill is recurring one, they may set up an automatic payment so that the bills are paid quickly as at when due.
Note that you cannot withdraw cash from a pooled income trust. When the disabled person passes away, what’s left of their asset must remain in the trust. This is why it is a wise idea to ensure you used it all during your lifetime to settle all the bills you have rather than letting them accumulate for your survivors.
How long does it take for Medicaid to give me approval after submitting my pooled income trust?
It may take anything between 1 and 6 months for you to get approval from Medicaid.
Getting professional assistance with your pooled income trust
Our lawyers understand the common issues with Medicaid and pooled income trust and we are always willing to help.
We can educate you better about your personal situation and guide you in the pooled income application process.
Whether you are doing it for yourself or a loved one, we offer you all the assistance you will need. Call us today to get in touch.