If a resident of Ohio is disabled and receives money
through an inheritance, gift, personal injury settlement,
back-payments from Social Security, or even the lottery,
their options are limited if they want to preserve their
government benefits, such as Supplemental Security Income
(SSI) and Medicaid.
A Pooled Medicaid Payback Trust allows an individual
with a disability to place money into a trust account
and receive distributions from the trust account for
services in a way that does not jeopardize eligibility
for government benefits.
A Pooled Medicaid Payback Trust is created using money
from an Ohio resident with a disability, know as the
Beneficiary. Once a trust account is established, the
Designated Advocate makes requests for distributions
from the trust account for supplemental services for
the Beneficiary. To ensure that government benefits
are not jeopardized, Community Fund Management Foundation
acts as the Trust Advisor and convenes a committee to
review distribution requests. Provided the distribution
does not cause any risk to or loss of the Beneficiary's
government benefits, money is distributed from the trust
account by the Trustee, Fifth
Third Bank, Northeastern Ohio.
|| The trust
account is established for the benefit of an individual
with a disability, known as the Beneficiary. The
Beneficiary must be an individual with a disability
and a resident of Ohio.
Advocate is also named when a Pooled Medicaid Payback
Trust is established. The designated advocate can
be a relative, friend, an organization, or the individual
with a disability, if he or she has the capacity
to do so.
The person establishing the trust account names
a Designated Advocate. It is important to select
a Designated Advocate who understands the needs
of the Beneficiary and who will represent the
best interests of the Beneficiary in a responsible
and trustworthy manner.
The Designated Advocate works with the Trust
Advisor, communicating the needs of the Beneficiary
of the trust account and providing information
and documentation about the government benefits
and supplemental services for the Beneficiary.
|As the Trust
Advisor, CFMF works with the Designated Advocate
and reviews all requests for distribution from the
trust account to ensure that the Beneficiary's government
benefits are not jeopardized. A Review Committee
evaluates all requests for distributions to make
sure the distributions do not jeopardize benefits
that have been applied for or are currently being
received by the Beneficiary.
To offset administration costs, there is a fee
charged by CFMF for the creation of a Pooled Medicaid
Payback Trust. There is also a minimal annual
Fifth Third Bank,
Northeastern Ohio, invests the assets of the Pooled
Medicaid Payback Trust and makes distributions from
the trust account. Funds in the trust account are
invested in mutual funds administered by the bank
and interest is earned on the investments.
The Trustee, Fifth Third Bank, Northeastern Ohio,
does not charge a trust account management fee.
Upon the death of the Beneficiary, the funds
remaining in the trust account may be left in
the trust account and the income earned paid to
Community Fund Management Foundation. Or the funds
can be used to pay back the Ohio Department of
Job and Family Services for assistance provided
through the Medicaid program to the Beneficiary,
and named individuals can receive the funds remaining,
if any, after the pay back to the state. This
election is made when the trust account is established.
Funds going to Community Fund Management Foundation
are used to support its charitable work of administering
trusts and educating the community about the availability
of trust for individuals with disabilities.
It is also possible to establish a Pooled Medicaid
Payback Trust with Community Fund Management Foundation
and one of our partnership organizations. Funds
left in a partnership
trust account after the Beneficiary's death can
be used by the partnership organization for supplemental services for other individuals with disabilities
affiliated with the partnership organization.
||Community Fund Management
Foundation does not provide legal advice or assistance
to establish the Pooled Medicaid Payback Trust.
A licensed attorney must review the trust documents
and sign them.
Your Lottery Winnings
Winning the lottery should be a something
to enjoy. Unfortunately, for individuals with
a disability who receive government benefits,
such a stroke of luck can jeopardize their
The Pooled Medicaid Payback Trust can help
by allowing the individual to set aside such
winnings, or funds from any source that an
individual with a disability may receive,
so that they can be used by the individual
in a way that enriches his or her life and
does not jeopardize government benefits.
Pooled Medicaid Payback Trusts
Pooled Medicaid Payback Trusts are authorized
under Federal law (42 U.S.C. §1396p(d)(4)(C)
as amended effective October 1, 1993). The
law allows the creation of pooled trusts
for persons with disabilities (as defined
by Social Security criteria) of any
age as long as the individual was disabled
prior to the age of 65.
To qualify for and remain eligible for
governmental benefits (SSI/Medicaid), a
person with a disability cannot own resources
in excess of the program's eligibility limits
and cannot have income in excess of the
Federal benefit rate. If either of the maximum
levels is exceeded through work income,
inheritance, a personal injury settlement,
or other sources, SSI eligibility and the
accompanying Medicaid eligibility can be
Assets in a trust are not considered a
resource if the person with a disability
has no ability to revoke the trust or control
any distributions from it. A Pooled Medicaid
Payback Trust is designed so that the beneficiary
does not have the ability to terminate the
trust or to control distributions; therefore,
the trust is not regarded as a resource
for the purposes of SSI or Medicaid eligibility.
A Pooled Medicaid Payback Trust must