Friday, December 9, 2016

What Is a Qualified Income Trust and Who Needs One?

A Qualified Income Trust based on Florida law, often times referred to as a Miller Trust, is a vital document a Medicaid applicant must have in order to qualify for Medicaid benefits, assuming their gross income is in excess of $2,022.

It is only the Medicaid applicant’s income that is of concern. The community spouse (the spouse of the Medicaid applicant) may have unlimited income. Therefore, we simply look to the gross income of the Medicaid applicant. If their income is in excess of the income cap of $2,022 then we must craft a Qualified Income Trust and properly fund it in order to qualify for Medicaid’s Institutionalized Care Program.

The first step in satisfying this requirement is to have a qualified attorney craft a Qualified Income Trust based on Florida law on your behalf. The next step is to open a checking account in the name of the Qualified Income Trust in Florida and to properly fund it. The amount you must place in the QIT account is dependent on how much the applicant is over the income cap. Any income in excess of the $2,022 cap must be placed in the QIT account each and every month the applicant intends to receive care program benefits.

Once qualified for assistance, the applicant’s income will be used to satisfy the applicant’s monthly patient responsibility. The patient responsibility is typically equal to the applicant’s income minus the $35 personal needs allowance and any income diverted to the applicant’s spouse to meet the Minimum Monthly Maintenance Needs Allowance.

 If you or a loved one is in need of Estate Planning Lawyer in Florida, please contact us at Upchurch Law or e-mail