Pooled Trust

When Do You Need a Pooled Trust?

The care of our loved ones is a concern that we all share. Your clients want the best for their children, parents, siblings, and friends, especially if they have a physical or mental disability. Unfortunately, providing for them may not be as simple as writing a check. If your client’s family members receive Medicaid benefits, any increase in income can render them ineligible. And while Medicaid covers medical expenses, their needs likely go beyond that. There are a variety of living expenses that still need to be accounted for. An effective option to present to your clients is a pooled trust for Medicaid purposes.

About Pooled Trusts

A pooled trust or a (d)(4)(C) trust is administered by a non-profit organization, specifically designated for the trust. Individual beneficiaries make contributions to fund the trust. However, they all maintain their own accounts. Since the non-profit manages the funds of its beneficiaries, they are able to maintain their Medicaid eligibility. The money in each beneficiary’s account MAY be used for living expenses, such as clothing and transportation. Additionally, the family members of the beneficiary can create sub-accounts to provide funds for their family member.

When Do You Need a Pooled Trust?

A pooled trust works great as a special needs trust for Medicaid purposes, especially for individuals with limited income. If the individual or their family cannot afford to pay for extensive medical expenses, they will likely apply for Medicaid. However, Medicaid doesn’t cover all living expenses and if the individual receives funds from a family member as a gift or through an inheritance, it may not be enough to cover medical expenses and disqualify them from receiving Medicaid benefits. Pooled trusts not only alleviate this issue, they are more cost effective than other special needs trusts and can provide additional management services.

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.

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Brett Panter
Panter, Panter & Sampedro

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John D. Ayers, Esq.
Marks & Harrison, P.C.

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