What is a Pooled Income Trust?

A pooled income trust is a type of special needs trust managed by a nonprofit organization. It allows individuals with income above Medicaid’s eligibility limits to deposit their surplus income into the trust. The funds in the trust can then be used for approved expenses, enabling the individual to qualify for Medicaid without spending down all their income.

Who is Eligible for a Pooled Income Trust?

1. Individuals Exceeding Medicaid Income Limit of $1,732 ($2,351 if Married)

• If your monthly income is higher than the Medicaid income threshold (often called "surplus income" or "spend-down"), you may be eligible to use a pooled income trust to meet Medicaid requirements.

2. People with Disabilities

• To qualify, you must have a disability as defined by the Social Security Administration or receive a Medicaid determination of disability. This includes individuals of all ages, including seniors who meet the criteria.

Benefits of a Pooled Income Trust

1. Qualify for Medicaid

• By redirecting surplus income into the trust, individuals meet Medicaid’s income requirements and gain access to essential healthcare and long-term care services.

2. Preserve Funds for Living Expenses

• Unlike traditional spend-down requirements, pooled income trusts allow you to use your surplus income for approved expenses such as rent, utilities, food, and medical costs not covered by Medicaid.

3. Avoid Financial Strain

• Instead of losing excess income, you can continue to use those funds to maintain your standard of living while benefiting from Medicaid services.

How Does It Work?

Once enrolled in a pooled income trust, you deposit your surplus income into the trust account each month. The nonprofit organization managing the trust then uses these funds to pay your approved expenses.

Why Planning Matters

Navigating Medicaid eligibility and understanding pooled income trusts can be complex. Proper planning ensures you maximize the benefits of the trust while securing the care and support you need.

How Can MLG Help?

At MLG, we specialize in Medicaid planning and can help you determine if a pooled income trust is the right solution for your needs. Our team works with trusted nonprofit organizations to set up and manage these trusts, ensuring you qualify for Medicaid while maintaining financial stability.

To learn more about pooled income trusts and how they can benefit you or a loved one, contact MLG and schedule your complimentary consultation today.