One common challenge Medicaid applicants face is having income that exceeds the program’s limit. To address this, two common planning tools are a Qualified Income Trust (QIT) and a Pooled Trust.

A QIT is limited in scope—it can only shelter excess monthly income and is restricted to paying for specific expenses like medical or facility-related costs.

A Pooled Trust, on the other hand, offers greater flexibility. It can hold both excess income and assets, and the funds can be used for a wider range of approved expenses, including rent, utilities, and personal needs. Additionally, a Pooled Trust is managed by a nonprofit trustee, who handles compliance, disbursements, and mandatory reporting to the Department of Children and Families (DCF). This relieves individuals and their families from the burden of managing a separate trust account.

If you’re exploring options for long-term care planning, contact Elizabeth Allen, JD, LLM, and Sierra G. Daigle today to schedule a consultation and learn more about how these options may benefit your situation.