Qualified Income Trust Lawyer in Salem, MA

Creating a qualified income trust could improve your eligibility for Medicaid. But what is this type of trust, and is it right for you? If you aren’t sure if you qualify for Medicaid, consult with an experienced income trust lawyer at Casey Lundregan Burns, P.C. We can answer your questions and walk you through the process of setting up a trust to help you meet Medicaid income requirements.

What Is a Qualified Income Trust?

To qualify for Medicaid, you must meet income and asset requirements. If you meet the asset requirements but not the current income requirements, you can consider setting up a Qualified Income Trust (QIT).

With a QIT, you transfer a portion of your income into the trust each month, lowering your taxable income to the threshold for Medicaid.

How Does a Qualified Income Trust Work?

There are three main roles within your qualified income trust:

  • Settlor or grantor: The creator of the trust (you, your guardian, or a power of attorney)
  • Trustee: The person responsible for the funds in the trust (this person can be any reliable adult — often an adult relative)
  • Beneficiary: The entity receiving long-term benefits (in this case, you and the state of Massachusetts are both considered beneficiaries).

Each month, you will need to deposit a percentage of your income into the trust. This percentage depends on the type of your income; for instance, you may need to deposit your entire Social Security check. Our qualified income trust lawyers can help you understand what types of income will go toward the trust.

Your trustee can use the funds in the trust to pay for certain aspects of your care. Depending on your circumstances, you may have a Personal Needs Allowance (PNA) from the trust that covers specific needs. If you have a spouse who does not live in an assisted care facility, they may qualify for a Monthly Maintenance Needs Allowance from the trust.

After you pass away, the funds remaining in the trust will go to the Massachusetts Medicaid agency, in the amount equal to the cost of your long-term care. In a sense, the state of Massachusetts will repay itself for the benefits it provided through Medicaid.

Who Can Benefit from a Qualified Income Trust?

The main goal of a qualified income trust is to reduce your countable income to help your eligibility for Medicaid benefits. You may benefit from this trust if you would like to use Medicaid to pay for long-term care and both of the following are true:

  • You meet the asset limits for Massachusetts Medicaid.
  • You do not meet the income limits for Medicaid.

If you do not meet the asset limits, we can discuss other strategies to improve your eligibility.

Contact a Massachusetts Qualified Income Trust Lawyer

At Casey Lundregan Burns, P.C., our law firm has been around for over 90 years. In that time, we’ve helped clients implement several Medicaid planning strategies to improve their eligibility for this government benefit.

If you need help setting up a qualified income trust or any Medicaid planning strategies, contact our team at 978-878-3519 for a consultation.