Securing Medicaid Eligibility With A Qualified Income Trust
Qualified Income Trusts (sometimes called Miller trusts or QITs) may be used when a Medicaid applicant’s gross income is higher than Medicaid’s monthly income limit. If an applicant’s income exceeds the income cap they will be denied benefits unless a QIT is established and properly funded. Gross income is comprised of Social Security payments (including any Medicare Part B premium), pension income, certain VA benefits, interest/divided income and other types of unearned income.
If you need assistance creating a QIT or any other type of trust common to estate planning or elder law, contact Feldman & Feldman, Counsellors at Law, P.A.. Our experienced attorneys can help you understand all of your options and create customized trusts to meet your needs and estate planning goals.
Timely Establishment Of A QIT Is Critical
We are often contacted by individuals whose assets are below the Medicaid asset cap and who have applied for benefits but have been denied because their income is too high. Medicaid treats assets and income separately, and if an applicant’s income is too high a QIT will be required even if they meet the asset limit. Establishing a QIT in these circumstances is of utmost importance because Medicaid benefits will not begin until the month in which the QIT has been established and properly funded.
Who Can Create A Trust On A Medicaid Applicant’s Behalf?
One important question when establishing a QIT is who will establish the trust if the Medicaid applicant is unable to act on their own behalf. In these circumstances, only the applicant’s spouse or a properly designated agent under a durable power of attorney can establish a QIT for the applicant. Further, the applicant’s durable power of attorney must specifically authorize the agent to establish the QIT. If the applicant does not have a power of attorney and there is no spouse that can establish the trust, then a guardianship proceeding will be necessary (guardianship proceedings are expensive, and burdensome on all involved, and it is much better to simply make sure the applicant has executed a durable power of attorney along with a complete set of updated advance directives).
A QIT May Be More Affordable Than You Think
We charge a flat fee for our qualified income trust services, based upon a fixed fee schedule. These services include
1. Confirming Medicaid eligibility
2. Preparation and execution of the QIT
3. Assistance with establishing the trust
4. Follow-up consultations to ensure the trust is administered properly by the trustee
5. Assistance with handling trust assets upon the death of the Medicaid recipient.
We would be happy to answer any questions and explain the process during an initial consultation.
Contact Us Today To Discuss Your Legal Needs With An Attorney
Feldman & Feldman is based in Coral Springs and serves clients throughout South Florida. If you or a loved one is in need of a qualified income trust we encourage you to schedule a consultation by calling our office at 954-227-7320 or using our online contact form. Our estate planning lawyers will follow up with you within one business day.