Pooled Trust

If you have clients who have loved ones with special needs, you know that protecting their interest is foremost on their mind. Whether it’s a spouse or a child, your clients will want to put measures in place so that all their needs are met. However, it’s not always as simple as drawing up a will. If the loved one with special needs is receiving Medicaid benefits, changes in their income may disqualify them from receiving those benefits. One method to combat this is the use of a pooled trust.

How Do Pooled Trust Work?

A pooled trust is managed by a non-profit organization. The trust pools the funds of all its beneficiaries, however, individual beneficiaries have separate accounts for which they can manage. Pooled trusts are able to utilize funds to make stable investments and often provide management services. Since the funds in the pooled trust are being managed by a non-profit association, not the individual, the beneficiary maintains Medicaid eligibility. A sub-account in a pooled trust can be established by the beneficiary, a parent, grandparent, guardian, or by a court.

Advantages and Disadvantages of Pooled Trusts

Using a pooled trust for maintaining Medicaid eligibility has its advantages and disadvantages, including:

  • Beneficiaries may be any age to be a part of a pooled trust.
  • Funds can be used to pay a variety of expenses, including out of pocket medical expenses, living expenses, or educational expenses.
  • A disadvantage of pooled trusts is that if you are over the age of 65, you may incur a penalty for drawing funds out of the pooled trust.

How Synergy Settlements Can Help You

The welfare of your clients is important as well as protecting yourself from liability involving Medicaid. Let the experts at Synergy Settlements work with your clients to ensure that their ability to receive Medicaid benefits is protected. We understand the nuances of pooled trusts and can make sure that your clients understand their options and can make the best choice.

For more information or to schedule a consultation, please submit our contact request form or call (877) 242-0022.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

TESTIMONIALS

"I recently engaged Synergy to assist with a complicated PTD settlement involving a substantial Medicare Set Aside. The claimant’s wife has been providing full time attendant care which is not Medicare covered. The Synergy nurse was able to do a full analysis of non-Medicare covered expenses which far exceeded the value of the MSA analysis performed by the carrier’s contracted MSA provider. The non- Medicare figures became the main focus of the settlement negotiations and more than doubled the value of the case. Although I could estimate the attendant care figures, the nurse added in other items that I would not have routinely considered. I also asked Synergy to evaluate the EC’s MSA as well as their prescription review. Synergy offered insight about the prescription donut hole which I did not have a clear understanding about. Again, their insight and information added a great deal of value to the overall settlement. Not only did I learn from Synergy but was able to educate my clients in the process. These are very complex and complicated areas; I will use Synergy again and again!"

Rosemary Eure
Lancaster & Eure

"Synergy is a valuable partner in the successful resolution of catastrophic cases. Their understanding of complex issues including Medicare, Medicaid and financial planning – allows me to be certain that my clients and practice are protected."

Hector J. Lombana
Gamba & Lombana

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