A pooled-income trust a special planning vehicle by which an individual receiving Medicaid community-based home care (“CBHC”) can shelter their excess monthly income.
There are income limitations when an individual receives CBHC. In 2015, that amount is $825.00 with a $20.00 disability disregard. What this means is that any income that the individual receives over $845.00/month, is payable to the home care agency and that excess income will not be available to help pay for that individual’s living expenses. A pooled-income trust provides a viable alternative to preserve that individual’s excess income for his/her living expenses.
A pooled-income trust is managed by a non-profit organization who maintains an account for each individual/beneficiary. The account is funded monthly with the individual’s excess monthly income. Bills are then submitted to the pooled trust and the trust will then utilize the excess monthly income to pay for the individual’s living expenses, such as rent, food, clothing, utilities, etc.
For a monthly fee, this enables the individual to retain the majority of his/her income for his/her needs.