What is a Qualified Income Trust (QIT) and do I need one for Medicaid eligibility?

Last week’s blog discussed the return of Medicaid renewals and the danger to some recipients of possibly losing their benefits. We believe now is a good time to give a refresher course in the use of the Qualified Income Trust (QIT), or Miller Trust. Many people had this requirement waived under COVID-19 rules and are now realizing they must utilize this trust to remain Medicaid eligible. What is a QIT and do you need one to qualify for Medicaid?

What is a QIT?

A QIT is needed when a nursing home resident’s income exceeds the Medicaid income cap for eligibility. In 2023, the Medicaid income cap is $2,742.00. So if the resident’s gross income exceeds this amount, they must deposit excess income into a bank account titled in the name of the QIT each month to receive Medicaid benefits.

What are the requirements for the QIT?

The first step is to put the QIT document in place. The trust must meet the following requirements:

  • It must be composed only of the income of the Medicaid recipient.
  • It must be irrevocable.
  • It must contain no resources. It is not used as an asset protection tool.
  • It must provide that at the Medicaid recipient’s death, the remainder of the trust will go to the Department of Community Health (DCH), up to the amount that was spent on the Medicaid recipient’s care.
  • The QIT must not be backdated. This means that time is of the essence if a QIT is necessary.
  • The QIT must be established in Georgia. A QIT established in another state cannot be used to qualify in Georgia.
  • The Medicaid recipient can sign the Qualified Income Trust (or their Power of Attorney or court appointed conservator) but the Medicaid recipient may not be the trustee.

Hurley Elder Care Law is here to help!

We know this process sounds complicated and daunting, but we are here to walk you through each step. A QIT can make the difference for qualifying for Medicaid. Call Hurley Elder Care Law at 404-843-0121 or contact us for a consultation. Our attorneys can review your situation and determine if a Qualified Income Trust is needed for Medicaid eligibility. We will dive in a bit deeper into the QIT rules next week so make sure you subscribe to our blog for updates.

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