Qualified Income Miller Trust
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FAQ
Once a Qualified Income Trust (QIT) has been prepared and signed, the Trustee must establish and maintain a separate bank account in the name of the QIT. The account can be established at any banking institution. Prior to going the bank to open the account, it is a good idea to call your bank and make an appointment.
Therefore, as an irrevocable trust, the QIT is required to have a separate Federal Employer or Tax Identification Number (EIN). The Trustee will use the EIN to open a trust bank account and to file any fiduciary income tax return required to be filed for the QIT.
Some Medicaid professionals include the cost of establishing this type of trust as a package deal with other Medicaid planning services. However, on average, solely setting up a QIT runs approximately $400 to $500, but may run as high as $1,000 or $2,000.
The Miller trust can pay the Medicaid recipient a small personal needs allowance, and the trust can also be used to pay the recipient's spouse a monthly allowance.If there is any money left in the trust when the recipient dies, Medicaid has a right to the money to recover the cost of care.
What Is A Qualified Income Trust (QIT)? If an individual's income is over the limit to qualify for Medicaid long-term care services (including nursing home care), a Qualified Income Trust (QIT) allows an individual to become eligible by placing income into an account each month that the individual needs Medicaid.
A qualified trust is a stock bonus, pension, or profit-sharing plan established by an employer for their employees. A qualified trust is tax-advantaged as long as it meets IRS requirements.
Payments. Miller trusts can be used to pay for a small monthly allowance, Medicare premiums and medical expenses that are not covered by Medicaid or Medicare. In any event, the Miller trust can only be used to pay for the applicant's allowable expenses.