Qualified Income Trust information you need to know. Florida’s Medicaid program has limits for an applicant’s assets: if his or her income is over the limit to qualify for Medicaid long-term care services (including nursing home care), a Qualified Income Trust is the solution. This trust allows a person to become eligible, by placing a portion of their income into a bank account each month that the individual needs Medicaid.
A Qualified Income Trust (QIT) is a written agreement that creates a special account in which a person can make deposits.
A person must have a QIT if their income before any deductions (like taxes, Medicare, or health insurance premiums) is over the income limit to qualify for the program.
Trusts are complex legal documents that require an attorney who practices in this area. Work with an experienced Medicaid trust attorney, to help you set up the QIT agreement, because this trust must meet specific requirements. It also must be approved by the Department of Children and Families Regional Legal Counsel, and a copy of the QIT agreement must be submitted to an eligibility specialist who will forward these documents for review. An experienced attorney will know the procedures and guide your paperwork through the steps.
Qualified Income Trust Requirements
A QIT has specific requirements. The agreement must satisfy all the following. It must:
- be irrevocable, meaning it can’t be canceled;
- be written so that the State receives all funds in the trust when the person dies (limited to the amount of Medicaid benefits paid);
- consist only of the applicant’s income without other assets; and
- Be signed and dated by the applicant, his or her spouse, or the individual with legal authority to act on the applicant’s behalf (Power of Attorney).
How does A Qualified Income Trust account work?
Once the account is set up, the person is required to make deposits into the QIT account every month for as long as Medicaid is needed. This can mean that a deposit is needed before a Medicaid application is approved. But as long as income is deposited into the QIT account in the month it’s received, it won’t be counted against the applicant.
Deposits can’t be made for a past or future month, and any income received back from the trust is deemed to be income. If the applicant skips a monthly deposit or fails to deposit enough income, he or she will be ineligible for Medicaid. (Income placed into a QIT is excluded as income in the eligibility determination; however, it’s counted in the calculation of the patient responsibility).
Questions about a QIT?
If you have questions about QITs, or any issue concerning Florida Medicaid, attorney John Frazier is a skilled Medicaid planning (with over 2,000 cases completed that helped preserve their family’s savings), estate planning and elder law practitioner.
If you want to learn if you or your loved one may qualify, contact accredited VA Attorney Frazier for a free telephone initial consultation at:
After 5PM: 813-431-3193