Living with a disability can be financially draining, especially if you need regular health services. A disability can also feel restrictive if it keeps you from pursuing your full potential.
Luckily, the federal government has different programs designed to make life easier for disabled individuals. However, most of these programs have limitations, and you may not qualify for them if you have income exceeding a specified amount. If you are a person living with a disability, but your assets do not qualify you for programs such as medical aid, you should consider pooled trusts.
Keep reading to understand everything there is to know about a pooled trust, including what it is, how it works, the eligibility criteria, and its advantages and disadvantages, or you can see more at KTS Pooled Trust.
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What Is a Pooled Trust and How Does it Work?
A pooled income trust is a kind of supplemental needs trust (SNT) that pools resources from numerous beneficiaries, in other words, other people living with disabilities, together and is managed by a non-profit organization.
Pooled trusts allow individuals with disabilities and senior citizens looking for long-term care services to spend down excess income so that they can qualify financially or keep being eligible for government benefits, such as Medicaid and Supplemental Security Income (SSI).
Even though all funds are pooled together for investment and management, each individual maintains a separate account. So, you essentially deposit your excess income into a pooled trust and then earn something from that trust to cover things and expenses that do not fall under the federal disability benefits.
That said, pooled trusts differ from personal disability trusts in that the former accommodates people of any age, including those over 65 years of age, and can be opened by the beneficiary.
Who is Eligible for Pooled Trusts?
Now, you may feel like a pooled income trust is right for you. But the big question is, are you a qualified candidate for it? The good thing is that pooled trusts do not ask for much in terms of requirements. As long as you have a medically diagnosed disability, you can apply for this trust at any age.
Benefits and Limitations of a Pooled Income Trust
Before you decide if this trust is right for you, you should familiarize yourself with the potential benefits and drawbacks. So, what are the advantages of this trust?
- Qualifies and helps you maintain eligibility for Medicaid, nursing home services, food stamps, and other SSI benefits
- Allows you to use your extra funds to pay for additional needs
- It saves you from having to spend down your money hastily
- Allows you to access community care
- Comes with no Medicaid transfer penalty for moving excess assets to the trust if you are below 65 years.
Tried to Apply for Disability Benefits Without Success? Try a Pooled Income Trust
You do not have to struggle with all the expenses associated with your disability by yourself. The several special needs benefits supported by the government can help you live a more comfortable and fulfilled life. However, if you have applied for it several times with no success, your income level may be disqualifying you. Consider pooled trusts to help you qualify and make better use of your excess income.
