I need a Qualified Income Trust to qualify for Medicaid? What steps are involved?

Have you recently discovered it is necessary for you or a loved one to put a Qualified Income Trust (QIT) in place to qualify for Medicaid? We introduced the reasons for a QIT in last week’s blog, but let’s dig a little deeper on the steps involved.

First, the QIT must be established.

The QIT is a trust document that may be executed by any of the following individuals:

  • The Medicaid Applicant/Recipient can sign the trust, but they may not be the
  • The Medicaid Applicant/Recipient’s court appointed guardian or conservator can sign the trust and/or serve as trustee.
  • The Attorney-in-fact, or Power of Attorney agent, can sign the trust and/or serve as trustee.

Please note: The Nursing Home may serve as trustee but CANNOT establish a trust.

Do you have your documents in order?

This is a great time to ensure that any Power of Attorney documents you have will grant you the proper authority you need to assist your loved one in this process. Are you aware of the specific powers granted in your Power of Attorney? Or maybe you don’t even have this essential document in place. It is important to attach any legal documents that establish your authority to handle affairs for the Medicaid Applicant to the QIT when you submit this document to your DFCS caseworker. Hurley Elder Care Law is happy to walk you through this process.

Next, the QIT must be properly funded and disbursed.

After the QIT document has been signed, the trustee should visit a local bank to set up a checking account for the trust. The trustee must deposit a portion of the Medicaid recipient’s income into the trust each month for the recipient to remain Medicaid eligible. It is wise to seek guidance from an elder law attorney familiar with the QIT rules to obtain guidance on using the trust correctly and following its stringent rules. Improper funding or payments from the trust could jeopardize the Medicaid recipient’s eligibility. These mistakes can cost you time and money.

When it comes to the QIT, it is good practice to understand the requirements before acting. Hurley Elder Care Law attorneys can review your situation and instruct you on the proper use of your QIT. Please contact us to schedule an appointment so you can feel confident in your path forward.

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