Qualified Income Trust to Help Pay for Nursing Home Care
Florida is an “Income Cap State” with regard to eligibility for Medicaid benefits to pay for nursing home care. That means that if the nursing home resident’s income exceeds the income cap”, he or she will not be able to qualify for Medicaid benefits to pay for their nursing home care, unless a “Qualified Income Trust” is implemented. [A “qualified income trust” is often referred to as a “QIT”, a “QIT Trust”, or a “Miller Trust”.]
For 2012, the income cap for Florida is $2,094 per month (effective 1/1/2012).
Accordingly, if you, a family member, or loved one, are otherwise eligible for Medicaid benefits to pay for nursing home care, but have gross income greater than $2,094 per month, then you must put in place a Qualified Income Trust so that you can qualify
for nursing home Medicaid benefits.
There are a number of key elements that must be included in the QIT. It must be irrevocable. After you have signed the qualified income trust document, it cannot be changed except to add new successor trustees if the serving trustee is unable or unwilling to continue as trustee, or to modify the trust to comply with applicable Medicaid law regarding nursing home care benefits.
A QIT must be signed in accordance with the Florida law applicable to trusts generally, and irrevocable trusts specifically. There are administrative details that are required for the administration of a trust after the QIT trust document has been signed. The qualified income trust must have its own bank account, and detailed records should be maintained for the QIT trust.
All of the Medicaid beneficiary’s income in excess of the income cap amount must be deposited into the QIT’s bank account monthly, or as received. Usually, all of the nursing home resident’s income is placed in the QIT’s bank account; and then paid to the nursing home after allowing the withdrawal of the Medicaid beneficiary’s personal needs allowance ($35 per month in Florida), and any of the Medicaid beneficiary’s income that is allowed to be diverted to the community spouse because of the spouse’s financial needs.
