Get Medicaid Income Trust Form

Medicaid Trust. Creating a Medicaid Trust, is a much less expensive option. A Medicaid Trust, sometimes erroneously called a Medicare Trust, is an irrevocable trust. It holds the assets of the future nursing home patient.

Set up properly, an irrevocable Medicaid trust protects your assets from a Medicaid spend down. It allows you to qualify for long-term care at the same time. It also means your assets can pass down to your spouse and children when you die. That is, if it is so stated in the terms of the trust.

Medicaid trusts are one option for people interested in preserving assets as well as their Medicaid eligibility. These legal tools hold assets in trust so they are not counted as part of a person's Medicaid application. But they must be put into use far enough in advance to satisfy eligibility requirements.

An irrevocable trust can protect your assets against Medicaid Estate Recovery. Assets in an irrevocable trust are not owned in your name and therefore are not part of the probated estate.

That's because the trust achieves Medicaid eligibility and protects its value. Your home can eventually be transferred to your children, rather than be lost to the government. You don't have to move because you can state in the trust that you have a legal right to live there for the rest of your life.

A Qualifying Income Trust ( QIT Qualifying Income Trust ) is a trust that allows the beneficiary to control the amount of income that is used to determine Medicaid eligibility. A QIT Qualifying Income Trust is often referred to as a Miller Trust.

Sometimes referred to as Qualifying Income Trusts, Qualified Income Trusts, or Miller Trusts (based upon a court case with the same name), they are used when a Medicaid applicant has too much income to qualify for Medicaid but not enough to pay for nursing home care or other long-term care costs.

A qualified trust is a tax-advantaged fiduciary relationship between an employer and an employee in the form of a stock bonus, pension, or profit-sharing plan. In a qualified trust, the underlying beneficiary may use his or her life expectancy to determine required minimum distribution (RMD) amounts.

Thus, revocable trusts are of no use in Medicaid planning. An "irrevocable" trust is one that cannot be changed after it has been created. ... For Medicaid purposes, the principal in such trusts is not counted as a resource, provided the trustee cannot pay it to you or your spouse for either of your benefits.

Medicaid trusts are one option for people interested in preserving assets as well as their Medicaid eligibility. These legal tools hold assets in trust so they are not counted as part of a person's Medicaid application. But they must be put into use far enough in advance to satisfy eligibility requirements.