Nobody wants to see their parents get older. However, as a part of life, the aging process is something we all have to embrace. Once our loved ones can no longer properly care for themselves, we may have to make decisions for their health, safety, and happiness.
Although assisted care facilities are options for retirees and grandparents, there are other options out there that could be the better solution for your loved one.
Looking to avoid the nursing home and receive home care? A Pooled Trust may be the answer.
You may think that a nursing home is the best solution for your aging loved one. However, there are other options to keep in mind that could be better for their mental health. Looking to avoid the nursing home and receive home care? A Pooled Trust may be the answer.
A pooled trust lets you qualify for Medicaid while still keeping some of your personal assets. The pooled trust lets multiple individuals take charge of a group of assets, ensuring not one individual is the sole person responsible for dividing the money or physical belongings.
The assets are ‘pooled’ together for administration and organizational purposes, but separated into certain sections based on the benefit of the older or disabled individual. The arrangement of the assets is similar to what you may find in a bank. In a bank, the organization combines all the deposits, but each customer keeps a separate account for dividing the benefits.
One of the most significant factors about a pooled trust is the people involved can be of varying ages, with you and your siblings having just as much control over the assets, even if you are 10-15 years apart in age. Keep in mind, your loved one who is over 65 years old could be subject to age penalties.
Requirements of a pooled trust
- The pooled trust must be established and run by a nonprofit association, meaning none of the members makes money from organizing and maintaining the pooled trust
- Each individual maintains a separate account as part of the pooled trust. This account, known as a sub-account, organizes the assets for the individuals. Even with the varying accounts, the assets are all pooled together for investment and management reasons.
- A sub-account can only be used to benefit the loved one who you are caring for.
- A sub-account can be created by the older person, a parent, or grandparent, depending on their state of mind and the presence of any disability.
- The trust will pay the state the amount remaining in the trust if your loved one passes away, up to the total amount of Medicaid costs paid for the individual under the state law.
Putting your loved parent or grandparent in a nursing home is no easy decision. However, other alternatives can work better for your family member’s state of mind and mental health. Looking to avoid the nursing home and receive home care? A Pooled Trust may be the answer.