How to Use Your Qualified Income Trust (Practical Guide) //

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Transcript: [Music] hi Jason neufeld with elder needs law and if you're watching this video and you're one of our law firm's clients and I hope this serves as a refresher that you can revisit if you ever want to be reminded of how your qualified income trust is supposed to operate if you're not one of my clients and you're in anywhere in the State of Florida and you find this video helpful all the better happy to have you
[Applause]
all right so in order to really get into this I'm going to provide a hypothetical example this is a would be a very common fact pattern that we might see so let's assume we have an 85 year old woman we'll call her Donna she is dementia she has all sorts needs all sorts of help with her activities of daily living and from all income sources combined she receives every month forty nine hundred dollars let's assume that's her gross social security income meaning we're adding back in the Medicare Part B deductions and then she gets a monthly Ira distribution and all that together gross income 4 900 per month she had 250 000 in the bank and lives in a half million dollar home and would like to continue living in that home for the foreseeable future but you'd like assistance paying for home health care
so we're going to do is we're going to legally and ethically protect our assets and qualify Donna for the Florida Medicaid waiver program that is the program that pays for home health care or assisted living facility care for those who are elderly or disabled and at least over the age of 18 and we're going to do for Donna is we're going to reduce the time she spends on the wait list very important she we're going to have make sure she passes the asset test she's got 250 000 in the bank we got to get that down to below two thousand dollars and we also got to get her to pass the income test that's really the primary focus of this video is that income test but just make it to make it real life I'm I'm adding in you know a few sentences about the asset test as well so let's assume we also developed a comprehensive Medicaid plan we were able to legally and ethically protect Donna's assets and get her 250 000 down to fifteen hundred dollars within a few months not years but within a few months we were able to do that in a legal ethical Medicaid compliance Manner and just so that we're using real numbers let's say that by the time we filed our application Donna had fifteen hundred dollars in her bank account so now we're going to focus again now I'm really focusing now on the qualified income trust which really pertains to the income test qualified income trusts are not for assets they're to protect or at least allow you to have more income and still be eligible for those Medicaid waiver program so in 2023 when I'm shooting this video the income cap is 2742 if you're watching this video in 2024 or later years that number will undoubtedly have changed but the principles will remain the same if the income cap is 2742 Medicaid's position is if your gross income not what's deposited in your bank account but if you're a gross income exceed that amount you're not eligible for Medicaid even if you only have fifteen hundred dollars in the bank because you don't pass the income test that's where a qualified income trust or Miller trust comes into play so if your income is over 27.42 we would have drafted and created a qualified income trust you will then take that trust once it's signed witness or notarized the trustee of the trust can take it to any bank and open up a bank account the way you would any checking account Bank of America Wells Fargo.....

[@freeinflorida4628]

Thank you... very generous!

[@elderneedslaw]

You are very welcome! Understanding how Qualified Income Trusts / Miller Trusts work is a really important component of Florida LTC Medicaid programs.

[@tangelaturner1262]

Hello, Where did you put the 250,000 in the bank and the 500,000 home go. I heard you say you move it over a few months down to 1500.00. I also heard you say never leave large amounts of money in the QIT.

[@elderneedslaw]

The 500K home can stay as-is (Medicaid doesn't count a primary residence at that value when determining whether someone is or is not eligible). As far as the 250K in the bank, we have a suite of other legal and ethical strategies that are Medicaid-compliant.... but it would NOT involve placing those funds into a QIT.
If in Florida, please call to schedule a consult so we can discuss your particular situation in more detail.