Pooled Income Trusts and Kiplinger's Retirement Report

Pooled Income Trusts
On occasion, we have clients that need to use Medicaid to cover their long term case expenses.  One of our clients participates in a pooled income trust.  It allows her to use her social security and pension to pay her living expenses, which exceed the amount of income Medicaid permits her to retain.
Jeffrey A. Asher of Pryor Cashman LLP explained Pooled Income Trusts.  As he said, Medicaid is sympathetic to the income needs of the elderly so Pooled Income Trusts are an approved method for keeping $725 a month and having living expenses covered by additional income.  An elder law attorney can help clients plan ahead to shelter their assets, but there is no way to plan ahead for pension and social security income.  When the time comes, the use of a Pooled Income Trust helps preserve income and qualify for Medicaid.

The process of choosing the right Pooled Income Trust and applying to the trust requires the help of an elder law attorney familiar with the laws of the state in which a client resides. Interesting for a financial organizer/daily money manager was a comment by Mr. Asher that his legal fees are based on the level of work done (or not done) on the clients’ behalf by the family. 

What Eddy & Schein has found is that either a client does not have family, the family lives far away, the family is preoccupied with work and children, or the process of collecting documentation is just too overwhelming (or fraught with emotional baggage).  This, of course, is where a financial organizer/daily money manager’s services dovetail with those of the elder law attorney, the needs of the client and of the family.  A financial organizer/daily money manager will do the in-home sleuthing, the hunting & gathering, the documenting that the attorney requires.  In addition to organizing documents, Eddy & Schein can automate some bill paying, consolidate CDs and recommend a lawyer to set up a trust. 


May 2008 - FEATURE
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