Nursing home residents and their families have long used pooled disability trusts to shelter funds for their future needs that are not covered by MassHealth. These may include extra therapies or medical care, entertainment, hiring geriatric care managers, or the costs of maintaining a home. The funds can also be used to pay nursing homes for any gaps in coverage by MassHealth that sometimes occur.
Read MoreTopics: MassHealth, disqualifying transfer, pooled disability trust
A recent case in our office highlighted the benefits of using a pooled trust when spending down for MassHealth eligibility. Our client, who has Lou Gehrig's disease, paid privately for his care until he ran down his savings. When we met with his daughter, the client still had about $12,000 in the bank. We explained the option of transferring this money to a pooled trust for her father's benefit as a reserve for her or whatever her father may need.
No Masshealth transfer penalty
Under the MassHealth rules, there's no transfer penalty for money deposited in a pooled trust for the benefit of the applicant for coverage.
Read MoreHave estate planning questions? If so, read: Get Your Ducks in a Row
