Medicaid is a boon for individuals who need long-term health care, but income and assets can affect eligibility. Setting up a qualified income trust (QIT) is an ideal solution for many individuals who find themselves denied Medicaid. A Brazos County trust attorney can help you determine whether a qualified income trust is suited to your needs.
How the Trust Works
Before setting up a trust you need to consider whether your assets and/or income render you ineligible for Medicaid. Your Brazos County trust attorney can review with you the current figures under Texas law. In 2011, for instance, a recipient of Medicaid was not allowed to make more than $2,022 per month and possess assets totaling more than $2000. A person with assets or income exceeding the limit can create a qualified income trust.
As your Brazos County trust attorney will tell you, the QIT carries some very distinct restrictions, so it may not be the optimal solution for your needs. For instance, you are only allowed to place monetary assets into the trust. Other assets, such as stocks, bonds, and real property, cannot be placed there. Moreover, you lose control of the assets you place in the trust.
If the applicant is able to do so, he can set up the QIT, himself. Other individuals who may do so in his place include the spouse and the agent given durable power of attorney. In essence, the assets placed in trust are used to pay for the patient’s Medicaid costs. Any money left over after the death of the settlor goes to the state.
A Brazos County Trust Attorney Can Help with a Qualified Income Trust
If you need legal assistance with estate planning, or would like more information about qualified income trusts, call a Brazos County trust attorney at Peterson Law Group: 979-703-7014 or 936-337-4681.