Medicaid is a joint Federal, State and City program which provides medical assistance for persons with low incomes and limited assets. In 1993 the Federal Government, in an effort to provide a more humane existence for individuals with disabilities, carved out exceptions for certain trusts in which individuals could place their own assets and income into without losing, or becoming ineligible for Medicaid, as well as other government benefits. The CLC pooled trusts are such trusts.
If there is money left in the account upon the death of the beneficiary, Medicaid will look to recover the money it is owed, unless the person leaves it to the trust for the benefit of others who are disabled. This is only true for participants in PT2 (self-settled) trusts. PT1 (third-party) trust participants can leave remainder funds to whomever they chose without restrictions.