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How to use a pooled SNT to eliminate the Medicaid spend-down.

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Posted: 01 Aug, 2008
by David Silva (New York Legal Assistance Group)
Updated: 05 Oct, 2018
by Valerie Bogart (New York Legal Assistance Group)

This Fact Sheet  explains how to use a Pooled Supplemental Needs Trust to eliminate the Medicaid spend-down (updated March 2018) - See SPANISH TRANSLATION. 

N. Y. Social Services Law § 366, subd. 5 (f) - Law enacted Dec. 18, 2017 - NEW LAW  enacted that requires the State Dept. of Health to provide written notice in plain language to an applicant for or recipient of medical assistance who reasonably appears to be eligible for medical assistance except for having income exceeding applicable income levels ... , that in certain circumstances the medical assistance program does not count  income . .. if it is placed in a trust .... The notice shall be included with the eligibility notice ...and shall reference where additional information may be found on the department’s website....”  L. 2018, Ch. 475, enacting A 5175-A /S 1241-A    (Search bill bill number here )

Note that new State forms (486T and 1151) were released in October 2012 for proving disability, as needed for approval of a Supplemental Needs Trust.  See this article for links to the new forms.  

Also note that NYSARC revised its joinder agreement and certain procedures for its Community Trust II in July 2017.  Links to these revised forms are on NYSARC website,  as well as in this article .

Also, while an agent appointed by a valid Power of Attorney may execute the joinder agreement on behalf of an applicant, HRA in July 2017 issued a policy saying that POA's executed after Sept. 1, 2009 must include a Substantial Gift Rider (SGR) along with the POA form.  HRA will reject the trust as invalid without this rider.  Under state law, a POA must be executed at the same time as the SGR.  Therefore, if there is no SGR, either  a new  POA and SGR must be executed together as new or the applicant, if s/he has capacity, can sign a new joinder agreement directly. At least one pooled trust -- CDR-- will amend an existing trust if provided with the re-executed documents.  Then that re-approved trust should be sent to HRA with the request for approval.   HRA has not yet said if such amended trusts will be approved.

Also see these new tools to help clients who want to enroll in pooled trusts, developed by NYLAG:

This article was authored by the Evelyn Frank Legal Resources Program of New York Legal Assistance Group.


Attached files
item 2017-07-26 Power of Attorney and Statutory Gifts Rider.pdf (74 kb) Download
item Pooled Income Trust Contribution Worksheet.xls (42 kb) Download
item Pooled Trust Readiness Checklist.pdf (158 kb) Download
item SNTShort March 2018.pdf (704 kb) Download
item NYLAG PooledTrust 2018 Spanish.pdf (247 kb) Download

Also read
item List of Pooled SNTs in New York State
item Advocate's Outline on Supplemental Needs Trusts and Rules for Impact of Lump Sums on Various Benefits
item Step-by-step guide to enrolling in a pooled income trust for Medicaid spend-down
item Legal Authorities Relating to Supplemental Needs Trusts
item Medicaid Disability Determinations - NYS Forms & Procedures (with updated forms July 2012)
item Applying for Medicaid Personal Care or CDPAP Services in New York City - 2016 Changes
item Know Your Rights: NYLAG Webinars on Medicare and Medicaid -

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List of Pooled SNTs in New York State       Legal Authorities Relating to Supplemental Needs Trusts

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