Trying to Qualify for Medicaid? A Pooled Trust Can Help You Avoid the ‘Spend Down.’

For many Americans, the problem of affording nursing home care on their own is that their assets may only purchase a year or two before completely drying up. It’s just that expensive to get nursing home care.

That’s why most Americans turn to Medicaid to help them afford their nursing home. The “catch” is that they can only own so much money, and it’s not very much at all. Unless senior citizens get help from an attorney to protect their estate, they may have to “spend down” what they own to only a few thousand dollars in order to qualify for Medicaid.

An attorney, however, can help people avoid spending down their estate by exploring their options in a pooled trust. This special trust can help seniors meet the financial requirements of Medicaid and other public benefits while still preserving their assets for additional needs.

How Much Does Nursing Home Care Cost in Massachusetts?

Nursing home care is anything but easily affordable for most Americans. Costs can vary depending upon where you’re located in the U.S. In Massachusetts, nursing home patients in 2020 can expect to pay an average of $395 per day in nursing home costs.

At that rate, nursing home care can rack up a staggering cost of $12,000 a month and $142,000 per year – and remember, these are figures based upon the daily average cost of care.

Medicaid Asset Limits in Massachusetts

As we previously mentioned, qualifying for Medicaid requires applicants to have only a few thousand dollars to their name. This is because Medicaid – as a joint program between the states and the federal government – broadly helps low-income Americans with the necessary medical costs they need.

You might imagine that “a few thousand dollars” means you may still be able to keep a comfortable buffer, but this is probably not the case. In Massachusetts, individuals are only allowed to keep as much as $2,000 when they apply for long-term care through Medicaid.

How a Pooled Trust Can Help

Pooled trusts are special needs trusts that pool the funds of many people into a single account and invested. Pooled trusts are typically used to provide financial security for people with special needs and disabilities.

A key feature of these types of trusts is that they allow the beneficiary to retain their eligibility for public benefits no matter how much money is set aside in the trust for them. For senior citizens considering applying for Medicare to afford nursing home care, this feature can allow them to keep their savings to afford supplemental costs.

Interested in Exploring Your Options in a Pooled Trust?

If you need help qualifying for Medicaid and want to avoid spending down your estate to $2,000 or less, reach out to Marsden Law P.C. Our attorney has nearly 20 years of experience when it comes to providing solutions for clients in elder law matters and more.

We can provide the personalized legal advice and services you need to build a better future for yourself and your family. Learn more about our services by scheduling a consultation with our attorney today.

Get in touch with Marsden Law P.C. by calling (800) 828-7854 or by filling our online contact form.

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