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Charitable Pooled Income Trusts


What you need to know.

Managing your cash flow when you are on Medicaid can be a tricky process, here are some things you need to know about Charitable Pooled Income Trusts to protect yourself.

When someone is on Medicaid, they are allowed to keep a specific amount of their monthly income, plus the cost of their secondary health insurance premiums.

The monthly income allowance was recently increased on 2/20/23 for budgets beginning 1/1/23. A single person is now allowed to keep $1,677 and a couple can keep $2,268. For more on this increase CLICK HERE.

According to Medicaid, any amount over these limits is considered “excess income” and Medicaid applicants have two choices if they are disabled:

1. They can turn over the excess to the Medicaid Managed Long Term Care Company or the Provider of Services each month.


2. They can initiate a Charitable Pooled Income Trust and contribute the excess income each month. After a small monthly fee to cover expenses, the remaining funds are available to pay bills in the applicant’s name.

If the applicant needs the excess income for bills, a Charitable Pooled Income Trust (a type of supplemental needs trust established and managed by not-for-profit organizations) is an alternative. Metro ElderCare Agency LTD can assist with this.

The Department of Social Services allows disabled applicants receiving Medicaid to put their excess income into this type of trust to be able to remain in their homes. It avoids having to turn over the excess income to the Medicaid Managed Care Company, thereby losing it.

The excess income must be deposited into the trust each month and can then be utilized for living expenses.

Note that disbursements from the Charitable Pooled Income Trusts are not issued directly to the individual but rather to the provider of the item or service. Those with Charitable Pooled Income Trust must submit bills in their name to be paid by the Trust.

Advantages & Disadvantages

As with any financial planning tool, there are advantages and disadvantages of the Charitable Pooled Income Trust.

The advantages are fairly straightforward – The applicant is able to use excess income (by Medicaid standards) to pay living expenses, receive Medicaid home care services, and remain at home.

The primary disadvantage is that you do not have direct control over the income that enters the trust. The trustee handles all disbursements. Any unused portion of the deposited funds each month remain in the trust and accrue. In addition, there are fees to set it up as well as annual and monthly fees.

Please note that Metro ElderCare is not responsible for unused funds in the trust; it is your responsibility to understand what is covered.

When the individual passes on, any remaining funds are forfeited.

Starting the Trust

Contact Metro ElderCare Agency to initiate this type of trust.

In Conclusion

Establishing a Charitable Pooled Income Trust is a valuable tool in the Medicaid process to protect excess income to pay the bills so living is more affordable.

Please feel free to call us with any questions. Working with a team of experts that truly care, can make all the difference when advocating for yourself and what you need.