Hi, all.

On my June 30th radio show, I interviewed Jeffrey Asher about Pooled Income Trusts. If you don't know what they are, you're really missing out because a Pooled Income Trust pay your bills (e.g., rent, utilities, telephone, medical costs, etc.) and qualifies you for Medicaid-funded home care. We didn't get to all the questions so the rest are in this newsletter. However, if you didn't listen to the radio program you really should. And now you can do it by going to the "Barbara's Radio Show" page.

Until next week . . .

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ARTICLE: Pooled Income Trusts -- Pay Your Bills, Protect Your Assets, and Live at Home

A proper Elder Plan will protect your assets from Medicaid's reaches. A proper Pooled Income Trust will protect your income from disqualifying you from Medicaid-funded home care. Jeffrey A. Asher, owner and manager of the Law Offices of Jeffrey A. Asher, PLLC answers some more questions on how to stay at home and keep your income while under Medicaid.

Where does a person find a Pooled Income Trust?

Pooled Income Trusts must be sponsored and administered by a not-for-profit organization. So, organizations such as NYSARC and UJA will offer a Pooled Income or Pooled Asset Trust service. However, local charities may offer their own Pooled Income Trusts. An internet search for Pooled Income Trusts in the local geographic area may help find charitable organizations offering Pooled Income Trusts. Otherwise, a telephone call to the local Medicaid office may also help locate local organizations offering Pooled Income Trusts. Of course, not all states will offer a Pooled Income Trust so a thorough search is wise.

How do they get started with a Pooled Income Trust?

The first step in any Pooled Income Trust is contacting the not-for-profit organization offering the Pooled Income Trust. Each organization will have its own forms and procedures for registering with the Trust, and joining the pool of other Medicaid applicants. The second step in the registration process is completing any and all forms required by the organizations, and paying any fees associated with registering with the Trust.

Are there fees for setting up a Pooled Income Trust?

Yes. Each not-for-profit organization may have its own separate fees for the enrollment, maintenance, and administration of the Pooled Income Trust. A comparison of the not-for-profit organizations offering Pooled Income Trusts in your local area may be a prudent attempt to minimize the fees involved. But these fees are typically very small compared to the enormous benefit given by the Pooled Income Trust.

What bills can be paid with a Pooled Income Trust?

Generally, the Pooled Income Trust will pay expenses for food, clothing, shelter, and basic health care costs of the Medicaid applicant. However, as long as the expense is reasonable for the individual's care and comfort, then the Pooled Income Trust should not hesitate to pay the bill. Moreover, the bills submitted to the Pooled Income Trusts do not necessarily have to be paid by the Medicaid application, but may be paid to or for his or her benefit by a family member or other caregiver. However, the not-for-profit organization itself may have policies for not paying for certain expenses, such as for alcohol, cigarettes, etc.

What happens to income left over at the end of the month?

Generally, a Pooled Income Trust is set up to expend all of the Medicaid recipient's income for the month such that nothing is left over at the end of the month. Because an individual may keep a certain amount of money without having to "spend down" the excess, the Pooled Income Trust is set up to pay out every bit of that excess. For example, imagine a person has $1,787 a month in income. However, the local Medicaid law only allows them to keep $787 a month in income. Now, imagine further that the individual has $1,500 a month in expenses. The Pooled Income Trust would be created and funded with the $1,000 of excess income, leaving the individual with the $787 he or she is allowed to keep. Each month, the individual would send to the Pooled Income Trust all of the bills to be paid, together with the $1,000 of excess income as well as $500 of the individual's retained income. In that case, all of the bills would be paid, the individual would retain $287 a month in income, and the Pooled Income Trust would be left with nothing at the end of the month.

However, if the Pooled Income Trust is left with any income at the end of the month, such as in cases where the Medicaid recipient passed away during the month, then the Pooled Income Trust would retain that income.

What happens when the person passes away?

When the person passes away, his or her remaining principal and/or income in the Pooled Income Trust would be retained by the Pooled Income Trust. That is typically one of the conditions of setting up a Pooled Income Trust, and one that is rather universally required from each of the not-for-profit organizations sponsoring a Pooled Income Trust.

Remember, if you're struggling to help your aging loved one, I urge you not to wait for a crisis to develop. Please call me toll-free at (877) AGE-WISE or email me at Barbara@AgeWiseLiving.com for a complimentary "get acquainted" conversation. I'm here to help!

JEFFREY A. ASHER is the owner and manager of the Law Offices of Jeffrey A. Asher, PLLC, servicing Westchester, Rockland, and Putnam Counties, as well as the five boroughs of New York. Mr. Asher's law firm concentrates primarily in the areas of estate planning, asset protection, estates and trusts administration, elder law and Medicaid planning. Jeffrey is a frequent lecturer for various financial institutions, civic groups and community organizations, and is often presented by the New York State Bar Association as a community educator on various estate planning topics. Jeffrey also is a legal commentator on trusts and estates, and elder law matters for Court TV, CNN Headline News and The CBS Early Show. Mr. Asher is admitted to practice in New York and Connecticut; is a peer-elected member of the Estate Planning Council of New York City; and a member of the Trusts and Estates Section and Elder Law Section of the New York State Bar Association and the Connecticut Bar Association. He is a graduate of Clark University in Worcester, Massachusetts, and earned his J.D. degree from Touro Law School in Huntington, New York. You can reach Jeffrey at www.AsherLawFirm.com or by calling (888) 720-2122

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