Protecting the Home From Medicaid Estate Recovery, Part 3

Protecting the Home From Medicaid Estate Recovery, Part 3Today we’ll complete our series on protecting the home from Medicaid estate recovery. Previously, we discussed Medicaid Asset Protection Trusts – a great tool for protecting your home from Medicaid estate recovery. Today, we’ll discuss another excellent tool for defending against Medicaid estate recovery: pooled trusts.

What Is a Pooled Trust?

A pooled trust is a trust that, as the name implies, pools the assets of several individuals together. This does not mean that other people have access to your assets, just that they’re centrally managed and maintained by an organization that specializes in pooled trusts. One of the main benefits of a pooled income trust is the ability to preserve your Medicaid eligibility by “spending down”, or depositing your extra assets into the pooled trust. Because there is a limit on the amount of income you’re allowed to receive before it would disqualify you from Medicaid, a pooled trust may be crucial to your Medicaid eligibility.

The funds that you place into a pooled trust can be used to pay for other medical services and day-to-day needs, including bills, food, and clothing. This may help you to “spend down” your savings and preserve your eligibility for Medicaid. Often these trusts are able to pay for costs like rehabilitation therapies, necessary medical equipment, and ongoing medical needs that are not covered through health insurance.

Who Can Use a Pooled Trust?

Any individual with too much income to qualify for Medicaid can use a pooled trust to pay their medical expenses and maintain eligibility for the program. It can also be helpful for those with a personal injury settlement who are in danger of losing their Medicaid eligibility because their settlement makes them ineligible for Medicaid.

How Do I Set Up a Pooled Trust?

Your attorney can help you to determine whether a pooled trust might be beneficial in your situation. They will also be able to help you to set up the trust and ensure that your assets are protected from Medicaid estate recovery. If you’re not sure whether your assets will be at risk for estate recovery or if the cost of setting up a trust is worthwhile, contact Ledwidge & Associates today to schedule your consultation.

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Protecting the Home From Medicaid Estate Recovery, Part 3

Ledwidge & Associates

Ledwidge & Associates, P.C. in New York City has years of experience helping clients create estate plans that fit their needs. We have the experience and resources to handle your critical legal matters with the utmost care and attention to detail.
Protecting the Home From Medicaid Estate Recovery, Part 3

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