Insight

What Is a Pooled Community Trust and How Does It Help Keep New Yorkers in Their Homes?

A pooled community trust allows disabled people who have Medicaid coverage to spend their monthly income that is designated as "surplus" on their own immediate living expenses and daily needs.

Pooled Community Trust Medicaid Spend Down
Anthony J. Enea

Anthony J. Enea

July 19, 2019 01:16 PM

A pooled community trust is regularly utilized to prevent the spend down of income by the recipient of Medicaid home care. It is a specific type of Special Needs Trust (SNT).

An SNT allows a person with a disability to continue receiving government benefits, such as Medicaid and Supplemental Security Income (SSI), irrespective of the dollar value of assets and income held by the SNT. The purpose of the SNT is to supplement (not supplant) the benefits paid by the government to help improve the quality of the life of the person with the disability. The legal requirements for an SNT in New York are delineated in Estates, Powers and Trusts Law of New York (EPTL) §7-1.12.

Unlike other forms of SNT’s, the pooled community trust has no age limitation and has no payback to the government requirements (such as a self-settled SNT). However, the funds held in the pooled trust at the time of the beneficiary’s passing remain in the pooled trust and may not be paid to the beneficiary’s estate or family. If the pooled trust chooses not to keep said remaining funds, they must be paid to Medicaid up to an amount equal to the total amount of medical assistance paid on behalf of the beneficiary by Medicaid. As such, it is recommended to use the funds deposited to the pooled trust every month.

The pooled community trust is established and managed by a not-for-profit association that acts as the trustee of the trust; a trust company must also act as a co-trustee. As a pooled community trust can have numerous beneficiaries, a separate sub-account is created and maintained for the sole benefit of each disabled beneficiary.

Any person, irrespective of their age (even over age 65), can establish and fund the pooled trust, however, there may be Medicaid and/or SSI transfer of asset penalties for those over age 65.

The most frequent utilization of a pooled community trust occurs when an applicant for Community (home care) Medicaid has an income greater than the amount permitted by Medicaid. For example, for the year 2019, an applicant for Medicaid is permitted monthly income of $879.00. If the applicant has an income of $2,000 per month, the excess income of $1,121 is paid to Medicaid assuming the applicant does not enroll in a pooled community trust or has monthly medical expenses in the amount of the surplus.

Once enrolled in the pooled community trust, however, the surplus income minus the monthly administrative fee paid to the not-for-profit can then be used to pay for the disabled person’s living expenses (such as, food, rent, taxes, mortgage, clothing, telephone, utilities, private pay care services, etc.). Without the ability to enroll in the pooled community trust, most disabled seniors would not be able to retain their monthly income and continue to reside at home and receive Medicaid home care. It is a critical component in allowing seniors to receive Medicaid home care and be able to utilize their income for their needs. In this sense, a pooled community trust should be seen as a patient-centered solution.

Additionally, the pooled community trust can be of use and advantage to a disabled younger person with special needs. For example, a disabled younger person may be a beneficiary of SSI and Medicaid. If the said person were to receive an inheritance, an accident settlement or recovery, or accumulates too much income (which would otherwise disqualify them from SSI and/or Medicaid), the use of the pooled community trust may be of significant advantage to them. Depending on the facts for each disabled person, they may be able to receive the inheritance, settlement, recovery and/or excess income while continuing to receive SSI and/or Medicaid. Said funds and/or income can be deposited into the pooled trust and be used for the disabled person’s living expenses as delineated above.

In conclusion, there are presently over 20 not-for-profit organizations in New York that offer pooled trusts. The assistance of an experienced elder law attorney in selecting a suitable pooled trust not-for-profit and enrolling in a pooled trust can be invaluable.

Anthony J. Enea, Esq. is the managing member of Enea, Scanlan & Sirignano, LLP with offices in White Plains and Somers, NY. Mr. Enea is chair of the New York State Bar Association’s Senior Lawyers Section. He was named Best Lawyers’ 2019 Trusts and Estates “Lawyer of the Year” in White Plains and Westchester County’s Leading Elder Care Attorney at the Above the Bar Awards.

Related Articles

In the News: Texas 2019


by Best Lawyers

A roundup of relevant news from lawyers listed in Texas.

Legal News Roundup Texas

Busting a Trust


by Joseph Marrs

The rules governing trusts and asset distribution are often much more flexible than many might assume. Here’s a primer.

Rules Governing Trusts and Asset Distribution

The New PPE


by Jennifer Stavros

How to plan your pandemic preparedness estate—all from the safety of home.

Planning Your Digital Estate Plan

Protecting Your Legacy With Estate Planning


by Tripp Wiles

You're careful with your finances; do you still need asset protection?

Protecting Your Legacy With Estate Planning

A Texas-Sized Reputation


by Justin Smulison

Dan Sciano’s proven record of success and leadership has made him a highly sought-after plaintiff’s litigator in the Lone Star State.

Dan Sciano: Expert Civil Litigator

Is It Time for You to Have the Long-Term Care Planning Talk With Your Parents?


by Anthony J. Enea

How should you talk to your parents about long-term care options? Estate planning can make for a difficult conversation, but wills and trusts are necessary documents for anyone growing older.

Estate Planning for Parents Guide

Most Americans Lack a Power of Attorney for Assets


by George M. Riter

Only 25 percent of American households have estate planning documents in place. A Power of Attorney for Assets will secure your financial affairs should you be unable to do so yourself.

Power of Attorney for Assets Documents

Ellen G. Makofsky, 2018 "Lawyer of the Year" for Elder Law


by Nicole Ortiz

Ellen G. Makofsky of Makofsky and Associates was named 2018 "Lawyer of the Year" in Long Island for Elder Law.

Ellen G. Makofsky LOTY

Anthony J. Enea, 2018 "Lawyer of the Year" for Elder Law


by Nicole Ortiz

Anthony J. Enea of Enea, Scanlan & Sirignano, LLP was named 2018 "Lawyer of the Year" in White Plains for Elder Law.

Anthony J. Enea LOTY

Trending Articles

The Best Lawyers in South Africa™ 2023


by Best Lawyers

Best Lawyers proudly announces lawyers recognized in South Africa for 2023.

South African flag

Announcing the 2023 The Best Lawyers in America Honorees


by Best Lawyers

Only the top 5.3% of all practicing lawyers in the U.S. were selected by their peers for inclusion in the 29th edition of The Best Lawyers in America®.

Gold strings and dots connecting to form US map

Best Lawyers Voting Is Now Open


by Best Lawyers

Voting has begun in several countries across the globe, including the United States, the United Kingdom and Europe. Below we offer dates, details and answers to voting-related questions to assist with the voting process.

Hands holding smartphone with five stars above phone

Best Lawyers: Ones to Watch in America for 2023


by Best Lawyers

The third edition of Best Lawyers: Ones to Watch in America™ highlights the legal talent of lawyers who have been in practice less than 10 years.

Three arrows made of lines and dots on blue background

Announcing The Best Lawyers in Australia™ 2023


by Best Lawyers

The results include an elite field of top lawyers and firms from Australia.

The Best Lawyers in Australia™ 2023

Announcing the 2023 The Best Lawyers in Canada Honorees


by Best Lawyers

The Best Lawyers in Canada™ is entering its 17th edition for 2023. We highlight the elite lawyers awarded this year.

Red map of Canada with white lines and dots

Famous Songs Unprotected by Copyright Could Mean Royalties for Some


by Michael B. Fein

A guide to navigating copyright claims on famous songs.

Can I Sing "Happy Birthday" in Public?

Could Reign Supreme End with the Queen?


by Sara Collin

Canada is revisiting the notion of abolishing the monarchy after Queen Elizabeth II’s passing, but many Canadians and lawmakers are questioning if Canada could, should and would follow through.

Teacup on saucer over image of Queen's eye

Rising Transfer Taxes


by Angus C. Beverly

Transfer taxes in California are becoming a statewide trend with potentially national implications. Here is a breakdown of the effects in several cities.

State of California in orange with city in backdrop

What the Courts Say About Recording in the Classroom


by Christina Henagen Peer and Peter Zawadski

Students and parents are increasingly asking to use audio devices to record what's being said in the classroom. But is it legal? A recent ruling offer gives the answer to a question confusing parents and administrators alike.

Is It Legal for Students to Record Teachers?

The Upcycle Conundrum


by Karen Kreider Gaunt

Laudable or litigious? What you need to know about potential copyright and trademark infringement when repurposing products.

Repurposed Products and Copyright Infringemen

Caffeine Overload and DUI Tests


by Daniel Taylor

While it might come as a surprise, the over-consumption of caffeine could trigger a false positive on a breathalyzer test.

Can Caffeine Cause You to Fail DUI Test?

Wage and Overtime Laws for Truck Drivers


by Greg Mansell

For truck drivers nationwide, underpayment and overtime violations are just the beginning of a long list of problems. Below we explore the wages you are entitled to but may not be receiving.

Truck Driver Wage and Overtime Laws in the US

Best Law Firms® Research Has Begun


by Best Lawyers

Best Law Firms® rankings are annually produced awards recognizing the top law firms across the United States. We are here to offer insight into the submission process for all eligible firms.

Black background with colorful squares and faces

Choosing a Title Company: What a Seller Should Expect


by Roy D. Oppenheim

When it comes to choosing a title company, how much power exactly does a seller have?

Choosing the Title Company As Seller

Thirteen Years of Excellence


by Best Lawyers

For the 13th consecutive year, “Best Law Firms” has awarded the most elite and talented law firms across the country through a thorough and trusted data review process.

Red, white and blue pipes and writing on black background