A pooled trust allows disabled individuals who are under age 65 to become financially eligible for public assistance, e.g. Medicaid, SSI, etc. This type of trust provides flexibility—allowing individuals to preserve their assets and monthly income necessary to pay for supplemental needs that are not covered by public assistance.

There are various types of pooled trusts. Many people are unaware of the pooled income trust which can be established by anyone (including seniors) to protect their monthly income and still access Medicaid.

It is important to understand that Medicaid has income thresholds—if you have more income than the threshold allows, you can either pay that excess income to Medicaid (money will be spent on the cost of your care) or you can establish a pooled income trust.

The pooled income trust receives the excess income through a charity. The charity can then use the excess income to pay for your monthly expenses up to the amount of money that you’re contributing.

For example, if you give $1000 per month and you have a gas, electric, or cable bill that adds up to that amount, the trust will pay those expenses. With a pooled trust, you are essentially keeping your income.

Depending on individual living expenses and needs, the amount of money contributed to the pooled income trust would vary.                               

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