Qualified Income Trust
As a retiree, one of your biggest concerns about the future may be how you’ll pay for a nursing home or long-term care expenses. Many seniors seek to enroll in Medicaid to obtain this coverage, but their income exceeds the strict monthly limit. Fortunately, there’s a way around the income cap. Texas law allows seniors to use a Qualified Income Trust to solve this issue. Other names for this Trust are Miller Trust, Pooled Income Trust, Income Diversion Trust, Income Cap Trust, Irrevocable Income Trust, d4B Trust, and Income Only Trust.
At Anderson Estate Planning, we know navigating the process of Medicaid enrollment and long-term care planning can be challenging, and we’re here to help in any way we can. Qualified Income Trusts can help seniors qualify for Medicaid even if their income exceeds the income limit for that program. The following information explains how this works in more detail.
What Is a Qualified Income Trust?
With a Qualified Income Trust, you can redirect income above the monthly Medicaid cap into a separate checking account owned by the Trust. The diverted income belongs to the Trust, not to you. Medicaid ignores the income deposited into the Qualified Income Trust, which helps you meet the stringent income rules.
One important note: a Qualified Income Trust does not shelter income. Instead, think of it as a funnel. The money goes through the trust account to pay part of your care expenses. Medicaid then covers any gap.
Funds from the Qualified Income Trust also may be used to pay for group retirement health insurance, prescription drug plans, and dental coverage.
What Are the Income Limits for Texas Medicaid Enrollment?
Here are the monthly Medicaid income limitations for Texas as of 2022:
- Single Person: $2,523
- Married Couple: $2,523 (one spouse applying)
- Married Couple: $5,046 (both spouses applying)
A Qualified Income Trust is particularly beneficial for seniors whose monthly income barely exceeds the cap.
Should You Hire a Lawyer to Set Up a Miller Trust in Texas?
Only a small percentage of attorneys work within the Medicaid arena. You should hire an estate planning attorney who is knowledgeable on this subject to help you set up your Qualified Income Trust. Creating, funding, and managing a Qualified Income Trust to maintain ongoing Medicaid eligibility can be quite complex. Hiring the correct attorney is crucial to the success of your Medicaid arrangements.
Call Anderson Estate Planning Today
At Anderson Estate Planning, we offer legal services in the Dallas-Fort Worth area of Texas, including asset protection, estate planning, special needs trusts, powers of attorney, probate, guardianship, and qualified income trusts. Don’t gamble with your future. Call Anderson Estate Planning at (469) 207-1529 and schedule your initial consultation today.