Medicaid Law and Practice: Part 2
Medicaid recipients in New York State frequently find it nearly impossible to survive on the $825.00 monthly income allowance provided by Community Medicaid to satisfy their living expenses. As a general rule, all excess income $825.00 plus a $20.00 per month unearned income credit must be expended on medical expenses. However, ways do exist to help such Medicaid recipients meet their living expenses.
Medicaid recipients over the age of 65 may join a not-for-profit pooled income trust. The Medicaid recipient would pay all of his or her excess income to the trust. The trust can then use those funds to pay the bills or services of and for the Medicaid recipient.
Medicaid recipients under the age of 65, who are the beneficiaries of a special needs or supplemental needs trust can achieve the same result. In that instance, all excess income must be paid to the trust and only bills and services directly benefiting the recipient can be paid by the trustees.
Third party supplemental needs trusts or special needs trusts can be established by parents or grandparents for their disabled children and/or grandchildren, in order to enable those beneficiaries to retain or obtain necessary or desirable government benefits.
Having dealt with disability issues, as well as many others affecting senior citizens during my sixteen (16) years of service as attorney to the Ulster County Office for the Aging, I will share some input regarding issues that I have addressed in subsequent releases. If you, a loved one or a friend need advice or assistance in any of area involving Medicaid, Medicaid Planning, special needs planning, or asset protection it would be my pleasure to meet with you, at a free consultation.