You’ve been living in New York for years, and you’re getting up in age. You want to make sure you can stay where you are and enjoy your retirement from the comfort of the home you’ve made there.
Living in New York costs a fortune. If you have to go on Medicaid, you’re concerned that you may have to give up the quality of life that you’ve become used to. Is that really the case?
Learn about a pooled income trust
You may be better off than you think, even if you do need to seek Medicaid. Thanks to a pooled income trust, you will be able to qualify for Medicaid if you keep excess funds in a pooled income trust (in most cases). Pooled trusts are unique in that they are like bank accounts.
In a pooled trust, many people put their assets into the trust. However, the individual assets are kept separated, so that individuals are able to get their assets and pay certain expenses without impacting their right to Medicaid benefits.
What are some expenses that you can pay with your pooled funds?
Some of the qualifying expenses you should be able to cover with your pooled trust assets include:
- Health insurance premiums
- Medical expenses
- Housing costs
- Attorney fees
- Guardian fees
- Supplemental nursing care
- Living expenses
There are some expenses that can’t be paid with the pooled trust’s funds. These may include:
- Income taxes (in most cases)
- Child support
- Other people’s expenses
Medicaid has a very low maximum income that has to be met to qualify. For people who are single without children, they may earn no more than $1,468 per month. Annually, that works out to approximately $17,609. As you know, living in New York on that kind of income would be nearly impossible. The state has a very high cost of living, which you need to account for as you age.
The pooled trust is just one way that you can make things easier for yourself. With a pooled trust, you may be able to protect your assets instead of having to spend them down to qualify for Medicaid. Additionally, you’ll still be able to access those assets for the bills you need to cover (as long as they are qualifying expenses), so that you can live more comfortably despite having to show a low income for Medicaid. Your attorney will talk to you more if you think that a pooled trust could be a good option.