Qualifying for Medicaid can seem confusing and impossible when you’re exploring options on your own. You want to retain the assets you’ve worked hard for over the course of your life to pass them on to your heirs, but you’re also justifiably concerned about being able to pay for care services as you age.
Elder Law Lawyers is here to demystify the qualification process and make the path to financial security clear and smooth. Our attorneys will help you become eligible for Medicaid with qualified income trusts in Lexington, KY. Book a consultation today to get started on exploring this and other options for protecting your assets and quality of life.
Create a Qualified Income Trust in Lexington, KY
Administering a qualified income trust (QIT) to maintain Medicaid benefits requires understanding the legal aspects and Medicaid requirements. If you or a loved one has income that exceeds the Medicaid guidelines, the cost savings of having Elder Law Lawyers draft and properly execute a QIT pales in comparison to any mistakes you may make using a preprinted form that you may have found on the internet.
What Income Qualifies for Medicaid?
If a Medicaid applicant’s total income is more than $2,313 per month for 2019, the applicant is not qualified to receive Medicaid nursing home benefits. This can leave many families in the stressful position of losing assets and becoming financially strained.
Federal law permits a Medicaid applicant to deposit his or her income into a qualified income trust (QIT) and be eligible for Medicaid. The income placed in the qualified income trust is not counted as income for purposes of the income cap. Therefore, the Medicaid applicant with a high income can actually qualify for Medicaid and retain their valuable assets to pass them on to their heirs.
To learn more about how this works and whether or not this would be a suitable solution for you, contact Elder Law Lawyers today.
Your Qualified Income Trust FAQs
Even in the most stressful of circumstances, there’s usually something that can be done to mitigate loss or reduce debt. Our experienced team knows how to design financial preservation solutions for aging individuals, people with disabilities, and the families of these groups. Contact us today to reserve your consultation and save yourself time, money, stress, and heartache.
It is important to understand the rules of qualified income trusts:
- A qualified income trust is irrevocable, which means the trustmaker can’t change their mind and undo the trust.
- The trust must provide that, upon the trustmaker’s death, the assets of the trust are payable to the state’s Medicaid program up to the amount that the agency has expended on the trustmaker’s behalf.
- Only income is to be placed in the trust. Other assets, such as a deed to the house or title to a vehicle, may not be included in a qualified income trust.
Elder Law Lawyers handles a wide range of estate planning needs, including qualified income trusts and other Medicaid trusts. Book a consultation today with our team to explore your personalized options.
An individual’s qualified income trust should be established before the Medicaid application is submitted. The Medicaid applicant is the creator of the QIT and signs the trust document. If an applicant cannot sign, his or her spouse or agent under power of attorney may sign. Typically, an adult child is the Trustee of the qualified income trust and has a fiduciary duty to see that the trust is administered correctly. Therefore, the Trustee generally sets up a special QIT bank account that is funded each month during which Medicaid benefits are active.
Be cautious of any person who is not an attorney and is drafting a qualified income trust, because they are engaging in the unlawful practice of law. It only takes a one-month delay in Medicaid benefits to cost you several thousand dollars if you fail to consult with the qualified attorneys at Elder Law Lawyers. Contact us today to schedule your conference for a qualified income trust.
We Protect Your Home & Life Savings
Medicaid Estate Recovery 101
The average nursing home in Kentucky costs $7,330 per month. Planning for this expense is essential as Medicaid expects to…
How to Improve Your Home’s Safety as You Age
In the United States, more older adults live independently than anywhere else in the world. According to Pew Research, around…
What is a Power of Attorney & Why Do I Need One?
Having control over your health and finances can be empowering. However, there may come a day when you won’t be…
Prepare for The Future Together: Estate Planning for Married Couples
Summer is wedding season. Starting your new life together as a married couple can be an exciting time. However, there…
We’re Here to Help
Thinking about one’s later years may be difficult, especially if chronic issues make it likely that nursing home care will be a possibility. Nursing homes are expensive, and paying for long-term care is often a significant drain on one’s savings and other assets. Insurance can help fill the gap for some people, but many seniors will need the assistance of Medicaid to pay for the nursing home expenses and other healthcare needs.
The simple fact is that not everyone who needs long-term care qualifies for government assistance. Elder Law Lawyers can help you explore your legal options, including trust documents such as a qualified income trust, as you make plans for future needs.