A Medicaid Applicant With Excess Income May Use a Qualified Income Trust (QIT) to Help Qualify for Long Term Care Benefits

HNWApplying for Medicaid Long Term Care Benefits, Elder Law

Qualified Income Trusts• Does Medicaid take all the income?
• When families start to think about Medicaid planning for an elderly parent who may need a nursing home soon, they many times believe they will not qualify because the parent’s income is too high.
• The short answer is that all income is factored into eligibility whether it is a nursing home, assisted living or home based Medicaid.

Social Security, pension and all other sources of income are considered when Medicaid eligibility is evaluated. Currently the maximum monthly income an applicant may have and still be eligible for benefits is just over $2,300+ (2019) but this figure increases a bit each year with inflation adjustment. Many families also question whether their loved one gets to keep their Social Security and pension income or will the nursing home take it.

How to Use a QIT for Medicaid Income Eligibility

A person can still qualify for NJ Medicaid if his/her income is greater than $2300 if it is placed in a properly drafted Qualified Income Trust (QIT) also known as a Miller Trust. In such a case the Medicaid applicant will be approved provided other eligibility requirements are met.

Except for $105.00 (Assisted Living) or $35.00 (Nursing Home) that each person approved for Medicaid is allowed to keep for his/her personal expenses, together with supplemental insurance premiums, all remaining income goes to the nursing home.

Here at Hanlon Niemann & Wright, we have drafted many QIT’s and can advise you in greater detail about how to use such qualifying trusts.

To discuss your NJ Medicaid application, please contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at fniemann@hnlawfirm.com. Please ask us about our video conferencing consultations if you are unable to come to our office.

By Fredrick P. Niemann, Esq., of Hanlon Niemann & Wright, a Freehold Township, Monmouth County, New Jersey Medicaid Attorney

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