Pooled Trusts for MassHealth Applicants Age 65+ Updated 2026

Updated October 2026

Pooled trusts are once again available to MassHealth applicants age 65 and over, with no transfer penalty.

What changed

In 2023, MassHealth announced that starting March 1, 2024, applicants age 65 and over who placed funds in a pooled trust would be subject to a transfer penalty period. That policy has since been rescinded.

Effective December 6, 2024, applicants age 65 and over who place funds in a pooled trust are no longer subject to a penalty period. Transfers into a valid pooled trust are permitted whether they are made before or after the individual turns 65.

What this means for you

This is welcome news. A pooled trust is the main way for a person age 65 or older with a disability to set aside assets, stay eligible for MassHealth, and pay for goods and services that MassHealth does not cover.

A Special Needs Trust is a legal document that allows assets to be set aside for the sole benefit of a person with a disability. It preserves the beneficiary’s access to public benefits and can be used to supplement those benefits. A Special Needs Trust can be an individual trust or a pooled trust, and either can be first-party or third-party.

Talk with PLAN

To learn whether a pooled trust is right for you or a family member, schedule a free 30-minute consultation or call us at 617-244-5552 (MA) or 401-234-8444 (RI).

Source: MassHealth Eligibility Operations Memo 24-08, Mass.gov