One of the concerns that many of my clients have as they age is, who will pay for their skilled nursing care once they exhaust their resources. This question comes up frequently because there are not significant non-retirement assets and the monthly income from retirement income sources is not sufficient to cover the costs of long-term care. For clients whose monthly income exceeds the Medicaid eligibility limit, a Qualified Income Trust or Miller Trust can be used to qualify for Medicaid. In 2023, the Georgia income limit for Nursing Homes is $2,742.
A Qualified Income Trust is an irrevocable trust that is created with the applicant’s income for the purpose of reducing the applicant’s income below the eligibility criteria.
In addition to being an irrevocable trust, there are several other requirements of the trust: 1) the trustee of the trust must be someone other than the applicant; 2) the trust must limit the uses of the trust funds during the applicant’s lifetime; 3) the trust must include state specific requirements for reimbursement of Medicaid upon the applicant’s death if any excess funds are in the trust; and other requirements which differ by state.
The Qualified Income Trust may be created by the applicant, if the applicant is competent to do so, the applicant’s spouse or by an attorney-in-fact pursuant to the applicant’s Power of Attorney that authorizes the agent to do so.
The trust must be managed in accordance with the state’s rules to maintain eligibility which may differ from state to state.
Determining whether a Qualified Income Trust or Miller Trust should be used requires looking at the specific facts and circumstances in each situation. To discuss your needs and estate plan, call us today at (678)781-9230 to schedule an appointment.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney-client relationship between you and Grissom Law, LLC.