Elder Angle
Planning for the Future: Qualified Income Trusts
The Qualified Income Trust (QIT) offers Seniors who need long-term care like nursing home service but are precluded from Medicaid because of income the opportunity to become eligible by placing money into a special bank account to meet the eligibility criteria.
A QIT is a written legal contract that must meet certain specifications and must be approved by the Department of Children and Families. Per the terms of the contract, a QIT participant deposits money into the account monthly to ensure that their income is below the Medicaid income cap. The deposited income is not counted in determining eligibility, thus making the individual financially eligible for Medicaid services. Money left in the QIT account upon death is paid to the State, up to an amount equal to the total medical assistance paid on your behalf.
Several qualifications come with this arrangement. A QIT must be properly completed and signed before the application for Medicaid benefits. The appropriate amount of money must be deposited in the current month, and deposits cannot be made for previous months or into the future. A failure to deposit the appropriate amount can result in denial of Medicaid services for that month.The QIT is designed to help people "in the gap" -- those whose income precludes them from Medicaid assistance but whose income is also not high enough to afford long-term care services. Seniors in the gap are in a unique position, and Medicaid programs such as the QIT are often effective ways of assuring that these Seniors do not fall through the cracks of the long-term care system.
Merely establishing a QIT and applying for Medicaid is no guarantee of services, as Medicaid is a complex program with multiple eligibility criteria. Seniors planning for their future can call the Elder Helpline at 1-800 96-ELDER (1-800-963-5337) to learn more about long-term care planning, and may wish to seek the counsel of a qualified Elder Law attorney. §
