Explanation of What a Qualifying Income Trust Is and How It Is Used

I get many calls from people wanting to protect assets with a Qualifying Income Trust (QIT), first called a Miller Trust.  This type of Trust is very useful in Medicaid Planning and applications.  It does not protect assets, but it does help qualify Medicaid applicants for Long-term Skilled Nursing Care.  When a person’s income exceeds the income cap, the applicant is disqualified from Medicaid.  The current cap in Texas is $2,205.00 since January 1, 2017.   Texas follows the name on the check rule in determining to which spouse income will be allocated.

If an applicant has $2,500.00 of monthly income the only way to qualify the patient is to create a QIT.  This is done by opening a bank account with no more than $20.00 and having the applicant or other responsible person and the Trustee sign the Trust.  The best practice is to deposit all income into the trust.  Then the patient is paid $60.00 for personal needs allowance, all other income is paid to the nursing home.  Medicaid law requires all patient income to be paid to the nursing home, except for certain permitted medical expenses and the personal needs allowance. Please call if I can help prepare a trust to help you or a loved one qualify for Medicaid.

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