A Qualified Income Trust(QIT), also known as a Miller Trust, allows a Medicaid applicant to place income above the Medicaid income threshold of $2,199.00 into a separate bank account each month. This excess income is then not counted towards the applicants Medicaid eligibility. To establish a QIT, designated trust paperwork will need to be completed, a separate bank account will need to be established, and excess income will need to be deposited into the account each month. There are many strict guidelines that need to be met in order for the QIT to meet Medicaid eligibility guidelines.
What criteria must an applicant fall under to utilize a QIT?
• An applicant whose income exceeds $2,199.00 but would otherwise qualify for Medicaid.
• The applicant must be clinically eligible.
• The applicant must have countable resources under $2,000.00 individual/$3,000.00 couple.
• What living arrangements allow the use of a qualified income trust?
• Skilled Nursing Facility
• Assisted Living
• Community and home based Medicaid Services
What if someone has already been on the Medicaid Needy Program prior to December 1st 2014? Do they need to set up a QIT?
If an individual was receiving Medicaid previously on the Medicaid needy program they are grandfathered in and maintain the guidelines of the Medicaid Needy Program and do not have to set up a QIT.
Note: If there is a change in their living arrangements (move from nursing home to assisted living or community), they will need to setup a QIT.
What guidelines need to be met when establishing a QIT in NJ
• A QIT can only be set up by the applicant, Power of Attorney or legal Guardian.
• The QIT must be irrevocable.
• The QIT must have a trustee to take care of administrative obligations; this individual may not be the Medicaid applicant.
• The State of New Jersey must be the first remaining beneficiary of funds upon the death of the Medicaid recipient.
• Only the applicant’s income may be deposited into a QIT. Assets or income from a spouse or other sources are not allowed.
• The applicant may not split a deposit from the same payment source (Social Security/pension).
•The QIT must be funded in the month of the desired eligibility date.
• The QIT needs to be established by the last day of the month that eligibility is needed, it is recommended that it be established in advance of that month as a precaution.
• Trust needs to be funded by the last day of the month each month that eligibility is needed.
• Maximum of funds that can be deposited into the trust to start the bank account is $20.00.
• Any month that income is not deposited into the trust will cause ineligibility for that month.
• If retroactive coverage is needed and the QIT was not established and funded, eligibility for retroactive dates will be DENIED.
• All income placed in the trust can only be used to pay the post-eligibility treatment of income (as detailed on the PR1, PR2 and PR3). Any transaction other than that will nullify the trust and jeopardize eligibility for that month.
• Any income left over after post-eligibility payments must remain in the trust.
• DMAHS(division of Medical Assistance and Health Services has a QIT template on it’s website that may be used by individuals to create the trust.
• The trust need not be set up by an attorney.
• All QIT’s are subject to the review and approval of Medicaid eligibility staff.
• Medicaid will request 12 months of trust statements at re-determination to make sure the trust was funded each month. Medicaid can retroactively revoke eligibility.
For questions regarding a Qualified Income Trust or for a free Medicaid consultation contact Senior Planning Services at : 1855.S.Planning (775-2664).