You cannot qualify for the Medicaid long-term care benefits if you don’t meet the eligibility criteria. To be qualified, your income must not exceed the allowable limits, your application will be turned down otherwise.
Understanding Qualified Income Trusts – QITs
A Qualified Income Trust is designed for those individuals whose monthly/yearly income is more than the allowable limits. This is also known as a Miller`s Trust. However, still, income is still not enough to afford long-term medical care. This ultimately creates a catch-22 situation for them; neither can they afford the medical expenses nor avail themselves of the Medicaid benefits.
A Qualified Income Trust provides a way to individuals having excess income to qualify for Medicaid benefits. Individuals hoping to gain Medicaid benefits eligibility contribute at least their surplus income into trust each month.
Most people confuse QIT with some other types of trusts, such as living trusts, pooled trusts, special needs trusts, etc. The primary objective of QIT is to create a legal pathway to Medicaid benefits for applicants who find it hard to be eligible due to their 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 into the states 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 spousal minimum monthly need allowance, and cost of medical assistance to the beneficiary. (The figure varies in different states)
Upon fulfilling all the QIT requirements , the trust account must be opened by the Qualified Income Trust Trustee. Next, the trustee is to ensure regular administration of the trust to conform with the terms and conditions. Failure to do so will make the beneficiary ineligible for the Medicaid benefits.
Cost of Creating QIT
The cost of creating a Qualified Income Trust (QIT) is not high. It ranges depending on the attorney and state of the resident. Contacting a qualified attorney is indispensable to create a seamless QIT.
States That Allow QIT
- Florida allows the use of QITs in order to meet Medicaid qualifications
Professional assistance is necessary to draft a QIT that meets all the requirements. Failure to do so, may lead you to Medicaid ineligibility.
Our professional QIT attorney at Kania Elder Law will help you establish a QIT that may enable you to attain the Medicaid benefits.