The Listen to Lawrence Letter: Community Medicaid and Pooled Trusts

February 6, 2023
November 29, 2022 • Volume 3 Issue 94
Dear Clients and Friends,
Here is another community Medicaid and pooled trust question…


My wife is currently on COMMUNITY MEDICAID living in our home. Her total assets are an IRA and a joint checking account with me with less than $15,900. She also has a POOLED TRUST. My concern is her finances after my passing. She is entitled to my full pension and social security. This would amount to over $40,000,00 annually which would easily cover her taxes, home insurance, etc. My question is where should this money go? Should it go into the joint checking account? Does it affect the $15,900 cap on assets? Would the excess go into the POOLED TRUST? As always I would appreciate your advice.  THANK YOU.


First, I hope you stick around for a while! 😊  However, should you die first, your wife’s income, not assets, will increase based upon receiving your monthly pension and increased social security (she actually gets the higher of either hers or your social security income). Since this is income, not assets, it has nothing to do with the asset allowance of $16,800 (increasing to $28,134 in 2023). The 2023 income level will be $1583 per month; any income she has in excess of this amount will go to the pooled trust, which can then can be spent on all the household bills. If the household bills are less than this income placed in the pooled trust, then money will accumulate in the trust, but can be paid out later for another bill should one arise later (perhaps the house needs new windows or siding?). Be careful though, because if money remains in the trust upon her death, the trust will keep the money.


I hope this helps! Please forward this email to your friends and relatives to share these informative answers to some very commonly asked questions.


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Stay safe!

Until next time...peace, health and happiness. Lawrence Eric Davidow