Pooled Medicaid Payback Trusts
The Pooled Medicaid Payback Trust is a “first party trust” created with funds belonging to the person with a disability.
Sometimes an individual with a disability owns or receives funds through employment, Social Security back payment, personal injury settlement, or inheritance. Holding on to those funds could cause government benefits to terminate. Fortunately, an eligible individual or his/her parent, grandparent, guardian, or court can place the funds in a Pooled Medicaid Payback Trust and allow government benefits to continue. Once in the Trust, the funds can be used to meet the beneficiary’s needs, as permitted by distribution rules.
Any funds remaining after the lifetime of the person with a disability may be retained by Community Fund Ohio or one of its nonprofit partners for charitable purposes or used to pay back Medicaid. After Medicaid is paid, any leftover funds can be designated for other individuals or charities.
Community Fund Ohio will accept a Trust funded with any amount, but the combined deposits must reach $5,000 before the funds can be used for the Beneficiary’s needs. Once the balance reaches $5,000, the funds can be used as permitted by distribution rules, without any ongoing minimum balance requirement. Trusts that are initially funded with less than $5,000 are referred to as “Roll-In Pooled Medicaid Payback Trusts.”
Our Pooled Medicaid Payback Trust is commonly used when an Ohio resident with a disability:
- Has needs that are not covered by government benefits, such as clothing, home furnishings, technology, hobbies, and personal care.
- Has money from a personal injury settlement, a Social Security back payment, or an inheritance that could cause government benefits like Medicaid or SSI to terminate.
- Sells an exempt asset, like a home, and wants to remain eligible for Medicaid.
- Builds up savings or wages that exceed $2,000.
- Seeks to establish a STABLE Account but has funds that exceed the STABLE limits.
Advantages of using our Pooled Medicaid Payback Trust:
- The Trust documents are created by Community Fund Ohio. Your attorney simply completes them for the Beneficiary to join the Trust.
- Community Fund Ohio updates our Trusts as federal and state laws change.
- Our Trusts have a professional Trustee, so you do not have to find a friend or family member with time and expertise to serve as Trustee.
- The person who establishes the Trust names a Designated Advocate who will request funds to meet the Beneficiary’s needs. All requests are reviewed by Community Fund Ohio to prevent prohibited or imprudent expenditures that could put government benefits at risk.
- The funds are invested by a professional investment manager.