Qualified Income Trust (QIT)

What is a QIT or Qualified Income Trust?

A Qualified Income Trust, or QIT, is a trust that Medicaid requires in some circumstances. Under Medicaid rules, if a Nursing Home resident has a monthly gross income of over $2,205 (2017 figure), Medicaid will deny the resident’s application for benefits.

But Medicaid knows that an income of that amount is really not enough to pay for Nursing Home Care. Therefore, Medicaid permits the QIT process to get around this problem.

Once the QIT is signed, a QIT account is set up at a bank. Income deposited directly into this trust account is considered not to have been received by the Nursing Home resident, making the resident Medicaid-eligible. Therefore, all income over $2,205 per month must be deposited into the QIT account.

The money in the QIT needs to be paid to the Nursing Home each month, along with most of the rest of the resident’s income before Medicaid will pay the additional money needed to cover the monthly cost of care.

At death, any money remaining in the QIT account, which should be almost nothing in most cases, must be paid to the Kentucky State Treasurer.

The QIT threshold is adjusted every January 1 and is three times the SSI poverty level for a single individual.

We prepare Qualified Income Trusts, also known as “Miller Trusts,”  for our clients. They must be prepared properly to comply with federal and state law.

To schedule a free consultation about a QIT or other elder law issue, please contact us here

At death, any money remaining in the account, which should be almost nothing in most cases, must be paid to the Kentucky State Treasurer.

The QIT threshold is adjusted every January 1 and is three times the SSI poverty level for a single individual.
We prepare Qualified Income Trusts for our clients.

If you have questions or would like to schedule a free consultation with us, please feel free to contact us, we’re here to help.

 


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