The Listen to Lawrence Letter: Time to Jump in the Pool!

April 26, 2024
April 23, 2024 • Volume 5 Issue 237
It is time to jump into the pool…read on:


A family member has an elderly relative in failing health that they’re looking to get into assisted living using Medicaid. They have minimal assets, a small pension, and Social Security.

Someone recommended they should use a pooled trust. I was wondering what your thoughts were on a pooled trust. The pros, cons, and any pitfalls they should be aware of.


The pooled trust is a great tool in our arsenal. A pooled trust is a trust created and maintained by a charity that receives your income (and assets if necessary under certain circumstances) which would otherwise have to be spent on your care before you would be eligible for Medicaid.

Let’s say that you are $1000 over the income limit for Medicaid and Medicaid wants you to spend that $1000 on your care before they will pay anything. Instead, you can pay the $1000 to the pooled trust and get Medicaid to pay dollar one. You can then submit personal bills to the pooled trust and they will pay them up to the amount of money you put in the trust. In other words, you can get your money back. Stupid system but it works. The only real downside is upon your death; if there is any money still in the trust at the time, the charity or the trust will keep the money.

We use this technique for all of our community (non-nursing home) Medicaid clients.

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


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As always, please send me your questions. If you are thinking about it, others are probably too, so my answers will no doubt help you and many others.

Let’s stay connected.

Stay safe!