One Senior Place: Pooled trusts can be a tool for affordable healthcare

Medicaid is one of the largest payer sources of long-term care in the state of Florida. It is a common myth that you have to be destitute to get Medicaid. While there are income and asset limits to qualify for Medicaid, you can protect your assets and still qualify. One of the commonly used asset protection strategies is a pooled trust.

What is a Pooled Trust?

A pooled trust, or d(4)(C) Trust is a type of special needs trust established under Federal and State law for the benefit of disabled beneficiaries. Pooled trusts do not have age restrictions, but they have to be managed by a non-profit organization. Here are the rules of a pooled trust according to AGED Trust, a non-profit trust company located in Longwood, Florida:

• The trust may contain income and/or assets of the disabled individual
• Is established by a parent, grandparent, legal guardian, the court, the disabled individual or their attorney-in-fact
• Is managed by a non-profit trustee
• Is used to pay the beneficiary’s expenses that are not covered by government benefits
• Can be used by disabled individuals of all ages
• Unlimited funding allowed
• Upon death, the funds retained in the trust are used to reimburse Medicaid first, and then the heirs, or as outlined in the trust documents

Transfers made to the Pooled Trust are exempt from the five-year Medicaid “look back” period. A pooled trust helps a beneficiary obtain or maintain their Medicaid eligibility while utilizing income and assets in the trust for their benefit. It is important to understand that funds retained in the trust after death, must be used to pay back Medicaid before they can be distributed to the beneficiary’s heirs.

According to Sharon Reich, Senior Trust Advisor with AGED Trust, “A pooled trust is a wonderful tool to help seniors and persons with disabilities afford the healthcare they need. Costs for medications go down tremendously, doctor visits and surgeries are mostly free and facility costs become affordable."

"It truly is a win-win for those who need to reduce their healthcare costs and protect government benefits.”

While there are costs for establishing and maintaining a pooled trust, the trust beneficiaries often have their Part “B” Medicare premium covered by the state, offsetting some of the trust maintenance expense.

Pooled trusts are one more option for seniors struggling to pay for healthcare costs and medications. To learn more about Medicaid planning and pooled trusts, reach out to the "Experts in Aging" at OneSeniorPlace.com or visit them in Viera or Altamonte Springs.

Brenda Lyle is a Certified Care Manager and Certified Dementia Practitioner with One Senior Place, Greater Orlando.

One Senior Place is a marketplace for resources and provider of information, advice, care and on-site services for seniors and their families. Questions for this column are answered by professionals in nursing, social work, care management and in-home care. Send questions toAskOSP@OneSeniorPlace.com or call 321-751-6771.