WHAT THE HECK IS A
POOLED TRUST?

HOW YOUR ELDERLY OR DISABLED FAMILY MEMBER WITH INCOME THAT IS "TOO HIGH"
CAN STILL QUALIFY FOR MEDICAID HOME CARE (or Husky C, OR QMB) IN CONNECTICUT
(last updated:  9/4/26)

Lisa Nachmias Davis
Davis O'Sullivan & Priest LLC
59 Elm Street, Suite 540
New Haven, Connecticut 06510
203-776-4400
davis@sharinglaw.net
www.sharinglaw.net ~ www.estate-elder.com

DISCLAIMER

    To qualify for Medicaid home care in Connecticut, or any other "waiver" program, it's a problem if your income is "too high."  For these programs, the cap on income is 300% of SSI, so for 2026, that's $2982.  One dollar more, and you're not eligible.  (This can also be true for some other benefits.   For instance:  "QMB" which pays the copays and deductibles of Medicare has a flat CAP.  One dollar over, you don't qualify.  In 2026, that's $2,807/single.  Husky C is for people with $1413 or less (2026); with more income, there's a huge dedutible.  If you need personal care assistance at home under something called "Community First Choice," the deductible complicates things so much people want to is this is a huge headache.)   The state looks at GROSS INCOME BEFORE DEDUCTIONS, not what goes into the bank account.

This seems crazy. One dollar too much, and not eligible?  That's not how it works for nursing home care.  In Connecticut, there is no "cap" for nursing home coverage.  So long as your income is less than the private pay, you're eligible, although you have to pay your income to the nursing home.  But for home care, to stay at home, even one dollar is too much.

Don't ask why. It's complicated. The point is that Connecticut DSS has a workaround to help you:  diverting the excess income to a "POOLED TRUST."    It's like a magic trick!  If the amount that exceeds the cap is deposited to this trust every month, abracadabra, the only income that is counted is what is not deposited.  The excess isn't considered as income any more.  (Someone under 65 could also use a Special Needs Trust.)  The same "trick" will work to get QMB and Husky C if income is too high.

       So what is it?  What's a pooled trust?

       A "pooled trust" is a type of common fund run by a charitable organization where disabled people have "accounts" representing their contributions to the fund.  The account can be used for the person's neesd and what's left on death goes to the pooled trust charity or to pay back the state.  It's like a mini Special Needs Trust. (As you might have heard, a Special Needs Trust is designed for disabled individuals as a way to benefit from their own assets while not having the assets disqualify them from eligibility.)  Unlike a Special Needs Trust (which is only for people under 65), a pooled trust account can be created for a disabled person of any age. A person of any age can set up the account and put assets in the account .... or income.  While this is also true for an ABLE account, the ABLE account will not work for this magic trick of disappearing your extra income.

What if you are over 65, but were never disabled?  That's OK.  Provided the doctor will says that you are unable, due to your medical etc. condition, to WORK for 12 months or more, you ARE disabled.   Doctors laugh when someone asks the doctor to say this about a 95 year old, but it's a requirement.

       The money does not actually disappear. You don't lose the money.  The trust is supposed to be for the benefit of the person who put the money in, the beneficiary.  After some minor administrative expenses, the money left over can still be used for the person's needs.  If the beneficiary is over 65, the state actually requires a "spending plan" showing that the money will definitely be used up for the person's needs.

Let's examine how this would work if your Mom, with income of $3,000 per month, needs to apply for the CT Home Care Program for Elders Medicaid Waiver (Category 3), which as a $2982 income cap, and for those with income over $2660, a copay. She may already get care for 20 hours a week under the so-called "state-funded" home care program.  Both programs are explained HERE. BUT, she really need 40 hours a week of home care. All she owns is her home and about $1,000. To get the Medicaid waiver home care that will provide the 40 hours of care, she needs a pooled trust (or Special Needs Trust if under 65, but that won't work if she's 64 and turning 65 in a few months). The only nonprofit in Connecticut that does this is PLAN of Connecticut (www.planofct.org).   You contact PLAN, which tells you that they require you to get help from one of the lawyers on their list. 

PLAN will require:

• A lawyer on the PLAN registry to oversee the setup.  The lawyer's fees SHOULD be low, but be careful here.  Some charge much more than others.  Note: your own lawyer can join the registry by paying PLAN $125.
• A one-page application plus another form called the "plan of care."
  
• Proof of disability -- if there isn't any, a form filled out by the doctor.
  
• Someone with a POA, or a designated contact "agent."
• $1,050 (2026 rate)  to set up (can be spread out over time if there isn't enough money up front).
• A subscription agreement form that must be signed AND INITIALED by the applicant, or a POA, with a witness.  No notary required.
• If Mom cannot sign, better hope that the POA document specifically states that the POA can establish and fund trusts. It's not enough if it just says "estates and trusts" on page 1. If it doesn't have that specific power, the power to establish and fund trusts, you might have to go to probate court and get appointed conservator and then also get permission to set up the pooled trust account.

DSS will require (in addition to any other application forms):

• The doctor form.
• A copy of the pooled trust subscription form, executed by mom (or authorized POA or conservator) and PLAN.
• If mom is over 65, AND if the amount going in is more than about $400/month, a SPENDING PLAN explaining how ALL the money that goes in will be used up during mom's lifetime.  It doesn't have to be used up every month; for instance, PLAN could save up for the property taxes.
  
• Proof that the initial month's "excess" income has gone in.  This might be a receipt from PLAN or a photocopy of a check.
  

        How much should go into the account? It depends. If Mom has $3,000 of income, and the limit for 2026 is $2,982, putting in $18/month might be enough to make her eligible for home care, BUT, unless she has other out-of-pocket medical expenses, like health insurance premiums, she'd still have a deductible -- the amount by which $2982 exceeds the "allowance" the state allows, which right now, until March 1, 2027, is $2,660.  So $2982 minus $2660 is $322 .  So she might want to put in $3,000 minus $2,660 or $340 per month.  (PLAN requires a minimum of $75/month anyway.)
.  
         So suppose she is depositing $340 per month.  You must come up with expenses for PLAN to pay with this money, net of a likely $50 monthly fee (sometimes more at the beginning).  If everything is on autopay out of your joint account, you may have to get creative.  Due to banking regulations, PLAN can be fussy about what and how it can pay.  There are a lot of logistics to work through.  And if $340 was put in the account on October 1st and Mom died the next day, the money really would be gone -- at that point everythign stops and the money goes to the charitable trust or the state. 

Hope this helps!

       P.S.  -- is it worth it? Especially if Mom owns a house, keep in mind that the State will want to be reimbursed from her probate estate when she dies to get repaid for any Medicaid Waiver home care (or other waiver services or nursing home care), but it will NOT want to be reimbursed for Level 2 home care or community first choice services.   A person might be getting 20 hours through the Level 2 program and would only get 30 under the Medicaid waiver, depending on the assessment.  Take the 20 hours, and no state claim? Or apply for medicaid, and the state wants reimbursement not just for the extra 10 hours, but the entire 30 paid by Medicaid.

Disclaimer: This information is maintained to benefit the elderly in Connecticut and nationwide by providing a resource to
attorneys, caregivers, and others assisting the elderly.   This is not legal advice,
and establishes no attorney-client relationship.  Accuracy and currency are not guaranteed.
The law changes often; this may be out of date. USE AT YOUR OWN RISK.
Please report changes, errors, and suggestions to Lisa Davis.