A Pooled Income Trust is a supplemental needs trust run by a non-profit organization where individuals with disabilities can deposit excess income above Medicaid eligibility limits, that allows you or your loved one to receive or maintain Medicaid benefits even if you have excess income. At the same time, this trust preserves your monthly income to pay living expenses like rent/mortgage, utilities, bills, additional hours for homecare services, and other non-covered needs, essentially "spending down" their income without impacting their Medicaid eligibility; this is considered a way to maintain quality of life while accessing necessary medical services allowing you to Secure Your Future.
A Pooled Income Trust (PIT) offers several key benefits, particularly for individuals with disabilities or special needs who want to maintain their eligibility for government benefits like Medicaid and Supplemental Security Income (SSI). While remaining in charge of their own finances.
A pooled income trust works by allowing individuals, particularly those with disabilities or special needs, to manage their income while remaining eligible for government benefits like Medicaid.
- Contributions: Participants deposit their excess monthly income into the trust. This income would otherwise exceed the Medicaid eligibility limits, allowing them to maintain eligibility for benefits.
- Distributions: Beneficiaries can direct the Pooled Income Trust to pay bills and approved monthly expenses, such as rent/mortgage, groceries, clothing, entertainment, education, transportation, and other needs that enhance their quality of life. These distributions do not count as income for Medicaid purposes.