Exploring The Benefits Of Pooled-Income Trusts
The cost of long-term care can be shocking. Affording it is nearly impossible for most, and qualifying for assistance is scarcely more accessible. However, some legal strategies and tools can provide a solution to this quandary.
The attorneys at Futterman, Lanza & Pasculli, LLP, help people seeking care and their families in New York explore these options. It’s possible to get the care you or a loved one needs without suffering financially.
What Is A Pooled-Income Trust?
One legal tool that could help is a pooled-income trust. This type of trust is an arrangement in which a person deposits their income into an account that a not-for-profit organization and a financial institution co-manage.
A pooled-income trust may have multiple beneficiaries, each with a separate account. However, the funds of each account are pooled for ease of trust management and investment, thus the title “pooled-income trust.”
The Benefits Of A Pooled-Income Trust
Applicants must have limited assets to receive assistance from health care programs like Medicaid. This often means they must sell their property and spend excess income to qualify. However, Medicaid may not cover all their expenses. If they don’t have additional assets or income because they got rid of it all to qualify for Medicaid, they’re in a bind.
Placing income or assets in a pooled-income trust allows applicants to retain resources and still qualify for assistance. When determining a person’s eligibility, Medicaid doesn’t look at trusts and assets contained therein.
Who Can Have A Pooled-Income Trust?
Pooled-income trusts can be especially beneficial for individuals with disabilities and older people. If they ever need to move into a long-term care facility, getting assistance will be a much smoother process. Plus, they’ll still have assets and income to fall back on or for family members to use.
Consult With An Elder Law And Estate Planning Attorney Today
If you or a loved one are concerned about affording long-term care, consult a skilled and experienced attorney at Futterman, Lanza & Pasculli, LLP. There could be legal options available to help you. To get started, call our office at 631-894-4730 or fill out an appointment request form to schedule a free consultation.