A pooled income trust is not common, like a will. So there is a huge possibility that you don’t know what it is, or how it works in Queens City. For this reason, I’ll be giving you a little breakdown on what a pooled income trust is and how it works in Queens City.
Before we talk about a pooled income trust, let’s take a look at what a special needs trust is as they are much related.
Special Need Trust
A special need trust is almost identical to the trust you know. However, there exist a huge difference. A special need trust is a legal arrangement and fiduciary association that allows a physically or mentally incapacitated individual or an individual with chronic illness to obtain income without diminishing their eligibility for the public assistance disability benefits provided by Social Security, Supplemental Security income, Medicare or Medicaid.
In a fiduciary relationship or association, an individual acts in the best interest of an individual or individuals to manage assets.
A special needs trust is a common technique for individuals who want to assist someone in need without risking the person’s eligibility for schemes that requires their income or assets to stay at a particular limit.
The trust also protects the held assets from the governments in case they attempt to access the funds from inheritances or other sources.
There exist three types of special needs trust:
- Third party special needs trust
- First party special needs trust
- Pooled special needs trust
Let us consider a pooled income trust
What is a Pooled income Trust?
If you are finding it difficult to come up with a good candidate to serve as the trustee, or if you are leaving a relative a huge amount of money and don’t want to create different special needs trust, consider a “pooled trust.” Pooled trusts are special needs trusts operated or managed by nonprofit organizations that pool and invest funds from several families. Each trust beneficiary has a different account, and the trustee selected by the nonprofit organization spend the money
On behalf of each beneficiary. Pooled trust, which is also regarded as community trust, is operational in several areas of the country.
Why do you need Pooled Income Trust?
As soon as you clock 65 and your assets are below the Medicaid limit of $15,150 for a single individual, you are eligible for Medicaid. Your income wouldn’t determine if you are eligible to receive Medicaid. However, Medicaid doesn’t turn a blind eye on your income. If you fail to plan, you will be asked to contribute towards the cost of your care.
Once Medicaid is financing your long-term care, the system boast of an integrated max amount of income you are eligible to retain for yourself ($862 per month). Any amount that exceeds the threshold is regarded as “surplus income,” and is supposed to be contributed to the cost of your care.
In New York Metro area, to be specific, living on $862 is far-fetched. For this reason, individuals living in New York, including those in Queens City, embrace pooled income trust.
How does a Pooled Income Trust Work in Queens City?
New York’s law allow you as a Medicaid enrollee to contribute your “surplus income” to your account as a pooled income trust instead of contributing it towards the cost of your care if you are battling a disability. The definition of “disabled” is a flexible one depending on age and health. Most elders who require home care will qualify. Provided you are doing that, your income will not have any impact on your Medicaid benefits.
How to join a Pooled Income Trust
When you are applying for a Community Medicaid in Queens City, you would also enroll in a Pool Income Trust at the same time. You are required to sign a Joinder Agreement to establish your personal account at the Trust. The money you transfer to the trust per month will be deposited into your personal account.