Qualified Income Trusts

You cannot qualify for Medicaid long-term care benefits if you don’t meet the eligibility criteria. To be qualified, your income must not exceed the allowable limits; otherwise, your application will be turned down.

Understanding Qualified Income Trusts – QITs

A Qualified Income Trust is designed for individuals whose monthly or yearly income is more than the allowable limits. This is also known as a Miller’s Trust. However, their income still may not be enough to afford long-term medical care. This creates a catch-22 situation: they cannot afford the medical expenses nor qualify for Medicaid benefits.

A Qualified Income Trust provides a way for individuals with excess income to qualify for Medicaid benefits. Applicants hoping to gain Medicaid eligibility contribute at least their surplus income into the trust each month.

Many people confuse QITs with other types of trusts, such as living trusts, pooled trusts, or special needs trusts. The primary objective of a QIT is to create a legal pathway to Medicaid benefits for applicants who struggle to qualify due to high income.

QIT Acceptance Criteria

Qualified Income Trusts must satisfy the following:

• It must be irrevocable.
• Must include a reversion clause stating that upon the death of the trust beneficiary, the trustee is to transfer the funds to the state’s account up to the full amount of Medicaid assistance that was provided.
• Should require the trustee to pay a monthly personal needs allowance, along with the spousal minimum monthly needs allowance, and the cost of medical assistance to the beneficiary (the figure varies by state).

Upon fulfilling all QIT requirements, the trust account must be opened by the Qualified Income Trust Trustee. Next, the trustee must ensure regular administration of the trust to comply with the terms and conditions. Failure to do so will make the beneficiary ineligible for Medicaid benefits.

Cost of Creating a QIT

The cost of creating a Qualified Income Trust (QIT) is not high. It varies depending on the attorney and the state of residence. Contacting a qualified attorney is essential to create a seamless QIT.

States That Allow QIT

Florida allows the use of QITs in order to meet Medicaid qualifications.

Key Take-Aways

Professional assistance is necessary to draft a QIT that meets all requirements. Failure to do so may lead to Medicaid ineligibility.

Our professional QIT attorney at Kania Elder Law will help you establish a QIT that may enable you to attain Medicaid benefits.

Taking the First Step

Start the conversation today by scheduling a free evaluation with attorney Amanda Kania. Let us help you find peace of mind and take control of your future.