By Attorney Erin l. Nunes, Esq., Partner
Great news for Massachusetts residents! Pooled trusts are once again available as an asset protection tool for those planning for long-term care. Thanks to the recent passage of the Long-Term Care Bill, individuals seeking MassHealth benefits can now establish a pooled trust.
What is a Pooled Trust? A pooled trust allows individuals to reduce their assets to $2,000 in order to qualify for MassHealth benefits, while still maintaining the right to have those excess assets used for their sole benefit. This is particularly beneficial for unmarried or widowed individuals who may need to deplete their assets to qualify for government assistance. The “pooling” of accounts in a Pooled Trust means that all of the separate trusts in the program are invested and administered under a common set of rules, while distributions are determined completely separately, in accordance with the individual needs and resources that each beneficiary has.
Key Benefits of Pooled Trusts:
- Asset Protection: Helps preserve assets for future needs.
- Enhanced Quality of Life: Provides funds for additional services not covered by MassHealth, such as social or recreational activities, companion care, transportation, and personal amenities.
- Flexibility: Can be tailored to individual circumstances and needs.
Important Considerations:
- Payback Provision: A pooled trust includes a payback provision, requiring the trust to reimburse MassHealth from funds remaining in the trust at your passing.
- Eligibility: Individuals must meet specific criteria and may need to consult with an attorney to determine if a pooled trust is suitable for their situation.
“Several years ago, I worked with a family to help their mother apply for long-term care MassHealth. She didn’t have a lot of money, maybe $70,000. Both of her children lived out-of-state, and she did not have any other close family nearby. When she first transitioned to the long-term care facility, her health began to decline. Fortunately, she had transferred her excess funds into a pooled trust when she became eligible for MassHealth. The family was able to request that the pooled trust use her funds to pay for a companion to sit with her several hours per day, several days per week. Almost immediately, her health improved. She resided in the nursing home for a little over two years before passing, and the pooled trust was able to pay for that companion to spend time with her until the end. Without the funds in the pooled trust being available to pay for that companion care, the family was certain that she would have passed much sooner.” – Attorney Erin L. Nunes
Need Assistance? If you are considering long-term care planning or exploring asset protection options, the attorneys at Surprenant & Beneski, P.C, can provide expert guidance. We specialize in MassHealth planning and can help you understand the benefits and limitations of pooled trusts.
Contact us today at 508-994-5200 to schedule a consultation!
