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What is a QIT:
A Qualified Income Trust or QIT is a trust that is used if a Medicaid recipient’s income is over the special income level, which is $2199 as of August 1, 2016.
When and Why is a QIT needed:
If someone is applying for or receiving Medicaid benefits and their income is over $2199, they will need a QIT. They must establish this trust or they will not qualify for Medicaid under the new rules.
Requirements of the trust:
- The QIT designates what income source(s) is/are put into the trust
- You CANNOT transfer or assign your right to receive income to the QIT
a. Which means income CANNOT be direct deposited into the QIT
- Trust must be Irrevocable
- Nothing, other than the income source designated in the QIT, can be placed in the trust
- State of Ohio must be the primary beneficiary of the trust
How it works:
1. The income source designated in the trust must be deposited into the recipient’s personal account AND then automatically transferred to the QIT
2. Distributions from the trust must be made in the following order:
a. Amount of income the recipient may keep;
b. Amount of income the spouse at home gets to keep;
c. Incurred medical expenses of the recipient; and
d. Up to $15/month for bank fees, attorney fees, and other expenses of the trust.
3. These distributions should be made by the end of the month and be paid directly from the QIT
How to create a QIT:
- Contact Lovett & House at (937) 667-8805 to have one of the experienced Elder Law attorneys assist in creating the trust so that it meets all of the statutory requirements.