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Writer's pictureKathy L. McNair, Esq.

Good News! Pooled Trusts Are Back as a Valuable Asset Protection Tool

Updated: Sep 16

We are excited to share some great news for individuals planning for long-term care. Massachusetts Governor Maura Healey recently signed the Long Term Care Bill that brings back the option of establishing a Pooled Trust. This powerful tool helps protect assets before applying for Medicaid benefits, especially for unmarried or widowed clients.


MassHealth changed its regulations earlier this year and removed the Pooled Trust as a planning option, resulting in limited planning options for single people needing MassHealth benefits.


However, with the approval of the Long Term Care Bill, the Pooled Trust will be reinstated on December 6, 2024. This allows our clients, especially those who are single or widowed, to protect their assets while ensuring they get the care they need. We are thrilled to have this powerful tool back.   


What is a Pooled Trust?

A Pooled Trust allows those needing care to protect their assets before applying for MassHealth benefits.  For some, especially single people, the return of this option makes it possible to stay in their homes or assisted living rather than being forced into a nursing home prematurely.


Even when nursing home care becomes the only option, a Pooled Trust can provide access to funds for important needs that MassHealth does not pay for, which helps improve a person’s quality of life.   This includes services like:


  • Companion care

  • Transportation

  • Haircuts

  • Cable and internet services

  • Clothing and personal belongings

  • Shopping services

  • Entertainment


These additional funds can make a big difference. 


Important Consideration: The “Payback” Provision

A Pooled Trust must include a “payback” provision. Any funds remaining in the trust after your death must be used to reimburse MassHealth. Usually, the Pooled Trust option is used by someone who does not have five years to plan and is one of the few remaining options to protect their assets.  If there is plenty of time to plan, we may have better planning strategies to consider to avoid a payback requirement.  However, the payback provision is better than not having the Pooled Trust as an option. 


Did we create a MassHealth Plan for you between February 2024 and September 6, 2024?

If we created a MassHealth plan for you between February 2024 and today, the Pooled Trust option was not included in the MassHealth Plan we prepared for you because it was not an option then. 


If you are a client of ours and meet the following criteria:

-          You are not married

-          We prepared the MassHealth Plan between February 2024 and September 2024

-          You have more than $2,000 in assets

-          You currently need care or think you will need care soon.


We recommend calling our office or scheduling a brief phone call with the attorney who helped you.  During this call, we will review your current situation and determine whether the Pooled Trust is something you should consider.  You can reach our office at 617-489-5900.


Need Help Planning for Long-Term Care?

If you are planning for long-term care or need guidance on protecting your assets, we are here to help. At Senior Solutions Attorneys at Law, we have extensive experience assisting clients with MassHealth Planning, protecting assets, and ensuring they receive high-quality care. Whether you want to create a new plan or update an existing one, we are ready to guide you.


Senior Solutions, Attorneys at Law, is an Estate Planning and Elder Law firm serving the Greater Boston, Massachusetts area since 2001. We are ready to help you with Medicaid Planning, Estate Planning, Probate, Guardianship & Conservatorships, Special Needs Trusts, and Fiduciary Services. We are here to help. Please call our office at 617-489-5900 or schedule a brief free consultation (offered to new clients) by clicking: https://seniorsolutions.as.me/FreeConsult 

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