Pooled Income Trust for Medicaid in NY - NYC Trust Attorney Inna Fershteyn
Medicaid Pooled Income Trusts for New Yorkers
A Pooled Income Trust to qualify for NY Medicaid is a special trust that lets an individual redirect their excess income. To qualify for Medicaid in New York, an individual has to meet specific income and asset requirements. For the year 2022, an individual’s assets can not exceed $15,900. Also, an individual can not receive more than $884 in income. If they collect more than $884 in income, then the amount exceeding $884 is known as “surplus.” Therefore, in order to receive Medicaid, an individual has to either “spend down” their surplus income or deposit any surplus into a special Trust known as a Medicaid Pooled Income Trust. A Pooled Income Trust NY lawyer in NY can help you set up your Medicaid Pooled income trust.
To speak to an attorney, please call (718) 333-2394 to set up a consultation.
What is a Medicaid Pooled Income Trust in NY?
A Medicaid Pooled Income Trust is used by NY Medicaid Pooled Income Trust lawyer as an Asset protection device to have you eligible for Home Care Aid medicaid in NY. The way a Medicaid Pooled Income Trust works in NY is that the trust is set up to deposit an individual’s surplus income or assets and therefore preserve their monthly excess income. NY Home care aid Medicaid then disregards the deposited money as your income. By depositing the surplus into a Pooled Income Trust, an individual can lower their total income which is counted by Medicaid, and be within the allowable income limit. The surplus medicaid income deposited into the Pooled Income Trust is used by the Trust company to pay for an individual’s expenses such as rent and utilities.
What Type of Income Goes Into the Pooled Income Trust in NY?
All income over the set NY Medicaid allowable limit should go into the trust. The income limit changes every year (depending on the cost of living), but what counts as income remains consistent. Income includes pensions, social security, lawsuit settlements, IRA distributions, annuity distributions, 401k distributions, and any other similar payments. When an individual applies for Medicaid in New York, the New York City Human Resources Administration (“HRA”) will use the personal information provided to them and present a budget. That budget sheet will list the excess income. HRA will then ask the individual to either provide proof that they have spent down the monthly money or ask that they provide proof of the fact that they have deposited the excess money into a Pooled Income Trust. HRA will finally ask for something known as a Verification of Deposit (VOD).
Do I need a NY Medicaid Planning Lawyer for a Medicaid Pooled Income Trust?
Any adult with who is over 65 years of age can have Medicaid Pooled Income Trust lawyer submit a Pooled Income trust documents for them. For example, individuals who are 65 or older who are proven disabled by Medicaid are eligible. More examples include elderly people in need of home care, individuals residing in assisted living, and mentally disabled adults who are all eligible to draft a Medicaid Pooled Income Trust.
Why Do You Need a Medicaid Pooled Trust to qualify for Medicaid in NY?
If an individual’s income is above the Medicaid income limit in NY, he/she will not qualify for Medicaid until they spend down their excess income, for example, toward medical expenses. The individual is required to submit proof of the spend-down in order to activate their Medicaid. However, items such as food, clothing, rent, cellphones, and other essentials are not counted towards your spend-down.
On the other hand, money in a Medicaid Pooled Income Trust can be used for food, clothing, rent, and other essentials, or saved up for more expensive items or services. Also, because the income deposited into Medicaid Pooled Trust is disregarded by Medicaid, the individual can keep their excess income without worrying about exceeding the Medicaid limit and losing their Medicaid.
What Can the funds from a Medicaid Pooled Income Trust Pay For?
Money placed in the Medicaid Pooled Income Trust can be used on following expenses:
- Medical treatments not covered by government benefits
- Living expenses
- Cab rides & other travel expenses
- Credit card bills
- New shoes & clothes
- Utility bills
- Home repairs
How can a Medicaid Planning attorney in NY help?
The first step in setting up a Medicaid Pooled Income Trust requires an individual to pick an Elder Law attorney who specializes in Pooled Income Trusts for NY Medicaid. Pooled Income Trusts are administered by many non-profit organizations. At the Law Office of Inna Fershteyn, we can help you evaluate your preferences and recommend a pooled trust that most fits your needs and to set one up very quickly.
Once you find and hire a Medicaid Planning Lawyer in NY, the next step is to have your medicaid planning lawyer complete the forms from that trust (a joinder agreement). Based on the budget provided by HRA, the individual will also need to determine the appropriate amount of income that will be deposited into the trust (proof of deposit). Then the individual will also need to obtain medical records from their treating doctor. The joinder agreement, the proof of deposit, the medical records, and any related forms will be sent to the local Medicaid agency, and ultimately, to Albany for processing.
For Medicaid Planning assistance and information, please contact the Law Office of Inna Fershteyn at (718) 333-2394 to receive the most highly qualified legal advice.