A Qualified Income Trust is a legal document and must be prepared by an attorney. A person applying for Medicaid benefits who has a gross monthly income exceeding the Medicaid eligibility guidelines will remain ineligible for Medicaid benefits until a legally valid Qualified Income Trust is created. Once the trust document is properly executed, you must open a bank account and “properly fund” the Qualified Income Trust starting with the month you are applying for. The Trust must be funded every month thereafter if you want to continue to get Medicaid benefits.
If you or a loved one has income that exceeds the Medicaid guidelines, the cost savings of having our attorneys draft and properly execute a Qualified Income Trust pales in comparison to any mistakes you may make using a preprinted form you may have found on the Internet.
Administering a Qualified Income Trust to maintain Medicaid benefits requires great understanding of the legal aspects and Medicaid requirements. The Rooth and Rooth Elder Law attorneys not only draft the Qualified Income Trust documents, but we also guide you through the process of administering the Qualified Income Trust each month thereafter to preserve the Medicaid benefits and to help you avoid common mistakes people make.
When your gross monthly income exceeds the Medicaid eligibility guidelines, you have no other option but to have a Qualified Income Trust if you want to obtain Medicaid benefits. The Qualified Income Trust allows Medicaid to cover the majority of your nursing home expenses, requiring you to pay only your gross income to the nursing home.
If you delay doing a Qualified Income Trust, you pay the entire nursing home bill on your own. If you do not have enough money to cover the cost of the nursing home bill, your family may have to pay the bill. A Qualified Income Trust is a requirement for anyone looking to qualify for Medicaid benefits for a nursing home and having gross income exceeding the Medicaid eligibility requirements. Even if your assets are low enough that you are eligible for Medicaid, if your income is over the permitted amount, you will not get Medicaid.
The Qualified Income Trust is not a tool. It’s essential! If you do not establish a trust and if you do not fund it each and every month that you have income exceeding the Medicaid limit, you will not be eligible in that month. 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 additional dollars if you fail to consult the qualified attorneys at Rooth and Rooth. Contact us today to schedule your conference for a Qualified Income Trust.