QIT or Miller Trust

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 income cap is adjusted annually. The current cap in Texas is $2,313.00 since January 1, 2019. 

If an applicant for Medicaid has a monthly income over the income cap 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.