Qualified income trusts (QIT’s) are legal documents that must be prepared by an attorney. A person applying for Medicaid benefits who has a gross monthly income exceeding the Medicaid eligibility guidelines will remain ineligible for Medicaid benefits until a legally valid Qualified Income Trust is created. Once the trust document is properly executed, you must open a bank account and “properly fund” the Qualified Income Trust starting with the first month in which you are applying for benefits. The trust must be funded every following month if you want to continue receiving Medicaid benefits.
If you or a loved one has income that exceeds the Medicaid guidelines, the fees for having the attorneys at Rooth & Rooth Elder Law draft and properly execute a Qualified Income Trust pale in comparison to the cost and frustration of trying to administer a trust yourself with templates you find online. Just one month of ineligibility due to an incorrect trust or administration of that trust can easily cost a love one five thousand to ten thousand dollars.
Importance of a Qualified Income Trust
If your gross monthly income exceeds the Medicaid eligibility guidelines, you need to have a Qualified Income Trust to obtain Medicaid benefits. A Qualified Income Trust allows Medicaid to cover the majority of your nursing home expenses, requiring you to pay only your current gross income to the nursing home.
If you have not yet established a Qualified Income Trust, you may end up paying your entire nursing home bill out of pocket. If you do not have the funds to cover the cost of a nursing home, your family may have to foot the bill. Even if your asset value is low enough to make you eligible for Medicaid, you still will not receive Medicaid benefits if your gross income is over the permitted amount.
Administering Qualified Income Trusts
Administering a Qualified Income Trust to maintain Medicaid benefits requires a great understanding of the legal aspects of Medicaid requirements. Our attorneys can draft Qualified Income Trust documents and guide you through the process of administering the trust each month. This helps preserve your Medicaid benefits and avoid making common mistakes that can jeopardize the financial benefits.
Schedule an Appointment
Qualified Income Trusts are more than just tools. They’re essential! Be wary of anyone who is not an attorney but offers to draft a Qualified Income Trust because they are engaging in the unlawful practice of law. It only takes a delay of one month in Medicaid benefits to cost you several thousand additional dollars. Consult the experienced team at Rooth & Rooth Elder Law Attorneys before moving forward. Contact us today to schedule a consultation for a Qualified Income Trust by calling (727) 397-4768 or filling out our secure form.
