By Linda Durzieh

In the world of financial planning, many myths and misconceptions arise regarding pooled trusts. Medicaid eligibility is a critical concern for many individuals requiring long-term care, especially when faced with challenges of income limitations. Pooled income trusts are designed to overcome these limitations. Consider some myths and facts that can help you better understand the balance of income management and Medicaid eligibility.


Myth 1: Pooled trusts are only for the wealthy.

Fact: Pooled trusts are not exclusive to the wealthy. They exist to help elderly or disabled individuals whose income exceeds the current required monthly income of $1,677. Pooled trusts help individuals shelter income over this amount.


Myth 2: Loss of control over income.

Fact: Contrary to the belief that members lose control over their income, individuals participating in pooled income trusts often work together with a trustee to manage the disbursement of funds related to their spending needs. The trustee ensures that their spending adheres to Medicaid regulations and guidelines.


Myth 3: A pooled trust is permanent.

Fact: Pooled income trusts are not permanent and can be canceled at any time. Duration of participation in a pooled income trust can vary, and be a temporary solution, such as during periods of Medicaid ineligibility due to excess income, or a long-term arrangement depending on need.


Myth 4: Complexity of trust management.

Fact: Managing a pooled income trust may seem overwhelming, but the details are typically handled by the trustee, or a non-profit organization experienced in the complexity of Medicaid regulations. The goal is to make it easier for you to manage your health care needs without the burden of having to navigate complex government requirements.


Myth 5: One-size-fits-all approach.

Fact: Pooled income trusts accommodate the unique needs of each member. A member must contribute the excess income determined by Medicaid. However, they can always add more. Contributions can vary, and disbursements are tailored to individual needs, ensuring a personalized approach that aligns with both financial and health-related requirements.


Myth 6: All pooled trusts are the same.

Fact: Not all pooled trusts are the same. When choosing a pooled trust, you play a significant role in the process, as we assist and ensure an efficient enrollment process with the pooled trust company. Our goal is to help put your mind at ease.

By dispelling myths and understanding the nuanced dynamics of pooled trusts, individuals can feel confident in navigating the complex Medicaid world to secure fundamental long-term care benefits. When balancing income management and Medicaid eligibility, pooled income trusts emerge as valuable partners that empower you to better take care of you and your loved ones.

Linda Durzieh is the Director of Trusted the Surplus Solution. Contact Trusted at 718-970-7878 or visit