MIR Blog

MIR offers financial planning services designed to help elderly clients preserve their assets in safe investments so they may qualify for government financial assistance programs. MIR charges fees to assist elderly clients in submitting Medicaid applications, and we may receive commissions for annuities structured in the planning process. In 7 years filing Medicaid applications, we have never had an application denied.

We are not attorneys and do not offer legal advice or draft any legal documents. The decision to hire MIR is in no way equivalent to or a substitution for an attorney.

Medicaid Qualified Income Trust (QIT) - Made Easy

Below is a simple explanation and an illustration of how Income Trusts work.

Who Needs One?

A Medicaid applicant who has a total monthly GROSS income of $1,911.00 or higher.

How Do I Get One?

1. Contact an experienced Medicaid planning practitioner such as Medicaid Information Resource who has successfully assisted clients with properly opening, funding, managing and closing QITs.

2. We will deliver to you an Income Trust document prepared by an attorney. This document has been used successfully by every client who required one to qualify for Medicaid.

3. You will sign the trust document per instructions in the presence of a notary (please note that most banks will not notarize trust documents).

4. You then take the notarized Trust document to the bank and open an Income Trust checking account.

How Do I Know How Much to Transfer?

1. The safest method of funding the Income Trust properly is to deposit ALL of the applicant’s monthly income into the trust checking account each month. However, we will provide you a written estimate detailing the gross income, the deductible Medicaid Allowances and the amount to transfer to the Income Trust checking account each month.

2. The Florida Department of Children & Families (DCF) will establish the “official” amount when Medicaid is approved.

How Does the Income Trust Work? (Do the Following EVERY MONTH):

1. Receive the automatic deposit of income into the applicant’s personal checking account

2. Transfer this income from their personal checking account to the Trust checking account.

a. You may decide to have the bank make an automatic transfer between accounts each month.

b. Medicaid does not count the amount transferred to the trust as income for that month. Therefore, income for the month is lower than $1,911.00 and the applicant qualifies for Medicaid.

3. Write a check from the Trust checking account to the nursing facility.

Example:

Please note that transferring or preserving assets requires expertise and experience. Families should consult with a knowledgeable Medicaid Practitioner such as Medicaid Information Resource prior to taking any steps to cash in or transfer ownership of life insurance policies.