Medicaid is a government program that provides health insurance to low-income individuals, families, and children. The states manage it, and each has its eligibility requirements. Medicaid recipients must be low-income and have limited resources, such as no other sources of income or assets. Financial situations can prevent you from qualifying for Medicaid, but there are ways to qualify still. A KTS pooled trust is one way to do this.

Defining Pooled Trust?

A pooled trust holds assets for many people under one administration but is separated into individual sub-accounts. It’s similar to a bank in the way a bank pools money from deposits, but every customer still has a separate account belonging to them.

A nonprofit organization is the only organization that can maintain this kind of trust. To qualify for these sub-accounts, beneficiaries must be disabled. SSI considers an individual disabled if they cannot work because of a severe impairment that will last at least one year.

How Can A Pooled Trust Help One Qualify For Medicaid?

old ipad

Disability beneficiaries may qualify for Community Medicaid with Long-Term Care through a pooled income trust. A major challenge for seniors requiring Medicaid benefits is their income is too high to qualify.

Special needs trusts are often used to help people get under the $2,000 asset limit, which is often the difference between eligibility for Medicaid and not being eligible. People under 65 who become disabled can move assets into a trust for personal and medical needs.

Beneficiaries over 65 may incur a transfer penalty. Nevertheless, pooled trusts can be extremely helpful to people who need long-term care in nursing homes. If getting that care is critical, and Medicaid is needed to cover the costs, putting money into a KTS Pooled Trust can provide much-needed financial and medical assistance. Spending excess income on qualified medical expenses or sending that money to Medicaid will help you meet Medicaid’s income limit.

What Is Medicaid Spend Down?

Aged, blind, and disabled (ABD) individuals who do not meet Medicaid eligibility requirements may be able to receive Medicaid coverage if their income is above the Medicaid income guidelines.

Medicaid spend downs are financial strategies used to qualify individuals for Medicaid when their income is too high. To qualify for Medicaid, an individual’s income must be spent down slightly to ensure that it is low enough to qualify.

Although Medicaid spend-down eligibility varies by state, the process can be extremely stressful, as Medicaid will only pay for medical and nursing care after you submit all bills supporting your spend-down claim. Your loved one may need to meet spend-down requirements in the future, so make sure you understand the eligibility rules and limitations.


A Pooled Trust can help you qualify for Medicaid by pooling your assets with other people’s assets. This allows you to keep your assets while still qualifying for Medicaid. Pooled Trusts are a great way to help you get the benefits you need while still being able to keep your assets.