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.

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.

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!

Gideon Schein was a producer, director, and writer for the theatre, opera, music theatre, film and television for over 25 years. He is a founding partner of Eddy & Schein In-Home Administrators for Seniors, He and his partner, Rebecca Eddy, work with senior citizens, helping them administratively, financially and organizationally. In addition, they build the team of professionals that will fill out the needs of their senior clients. He has a BA from Oberlin College, an MA from University of Minnesota and an MBA from Columbia University and is a Professional Daily Money Manager, certified by AADMM (The American Association of Daily Money Managers. www.eddyandschein.com

September 1st Age Wise Living Radio Show

Surviving Eldercare

Many of us - especially Baby Boomer women - have been raised to believe our job is to take care of our family's needs, including those of our aging parents. It's easy to lose sight of ourselves during the process of caregiving. We so often feel that we shouldn't complain. After all, they're our parents and we have a duty to them. Finding the balance between eldercare and the rest of our lives is critical. That's why I'm so delighted that life coach and writer Ellen Besso will be joining us to help us understand how eldercare affects every aspect of our life - and how to find the balance. http://www.ellenbesso.com