Do I Need a Medicaid Pooled Trust in Palm Beach County?

For many elderly individuals in Palm Beach County, Medicaid represents a major priority in the estate planning process. You may be aware that Medicaid has strict eligibility restrictions, as this program is reserved for those with financial limitations. You might also be aware that you can utilize various strategies to qualify for Medicaid, even if your current wealth would normally make you ineligible for this program. But while many strategies revolve around qualifying for this program, other strategies help those who are already receiving Medicaid support. One example is a “Medicaid pooled trust.” What exactly is a Medicaid pooled trust, and can an estate planning lawyer in Palm Beach County help you establish one?

Medicaid Pooled Trusts Can Help Those Who Exceed Asset Thresholds 

Even after you qualify for Medicaid, you could lose access to this program if your countable assets exceed a certain level. There are strict asset thresholds for Medicaid recipients, and anything you own above this threshold could cause issues.

You might need to “spend down” excess assets, which involves spending everything over your asset threshold on legitimate expenses. This may be viable for some individuals, but there is no sense in spending excessive amounts of money on unnecessary expenses. To make this issue even more problematic, you might be barred from spending your excess assets on basic living expenses, such as food and shelter.

A Medicaid pooled trust represents a solution to this problem. Normally, assets in a trust cannot exceed your asset threshold but a Medicaid pooled trust is an exception to this rule. If you put your assets into this specific type of trust, Medicaid will not consider it when reviewing your countable assets.

How Is a Pooled Trust Different? 

A pooled trust is a type of special needs trust. As the name implies, these trusts “pool” or combine assets from various people. The assets are “pooled” for administrative and investment purposes, although each beneficiary’s assets are separately tracked for the benefit of that beneficiary. Each month, you’ll have the opportunity to deposit money into the trust – just like you would with a bank account. This money coming into your pooled trust sub-account might include funds from a car accident settlement, retirement funds, social security monies, and much more.

You can use the trust to cover your monthly living costs in a somewhat indirect manner. Instead of withdrawing money and paying your living costs yourself, you’ll submit your receipts and bills to someone working at the trust. The trust will then pay your bills directly, ensuring a system that does not trigger any issues with Medicaid.

Can an Estate Planning Lawyer in Palm Beach County Help Me Qualify for Medicaid? 

If you need to qualify for Medicaid, an estate planning lawyer in Palm Beach County may be able to help. A Medicaid pooled trust is only one example of an effective strategy in this regard, and others could be more suitable. To discuss your specific financial situation in more detail, it makes sense to speak with a lawyer. Schedule a consultation with Kitroser Lewis & Mighdoll today to get started with an action plan.

Sources: 

medicaid.gov/

law.cornell.edu/wex/pooled_trust