A trustor is the person who creates a trust. A trustor is also called a grantor, donor or settlor. A trust is a separate legal entity that holds property or assets of some kind for the benefit of a specific person, group of people or organization known as the beneficiary/beneficiaries. When a trust is established, an individual or corporate entity is named to oversee or manage the assets in the trust. This individual or entity is called a trustee. A trustee can be a professional with financial knowledge, a relative or loyal friend or a corporation. More than one trustee can be named by the trustor.
The qualified Medicaid income trust is a legal instrument which meets criteria in 42 United States Code 1396(p) and which allows individuals with income over the institutional care program limits to qualify for institutional care services or for home and community based services assistance.
A Medicaid trust may take various forms and laws vary by state. There are differing requirements under state laws regarding what assets may be counted or reached for recovery upon death. To comply with applicable requirements, professional financial advice should be sought. The term "Miller Trust" is an informal name. A more accurate name for this trust is an "Income Cap Trust". It has also been called an Income Assignment Trust. This is because, after the trust is created, the patient assigns his or her right to receive social security and pension to the trust.
A Qualified Income Trust (QIT) form in New Jersey is a legal document that allows individuals who have too much income to qualify for Medicaid benefits to still be eligible for assistance by placing their excess income into a trust. This trust is commonly referred to as a "Miller trust," named after a court case that established its use. A QIT form is specifically designed for individuals who need long-term care but have income levels that exceed Medicaid's limits. By creating a QIT, the excess income can be put aside into a trust while still allowing the individual to meet the income requirements for Medicaid eligibility. New Jersey offers different types of QIT forms to meet the specific needs of individuals. These include: 1. Pooled Income Trust: This type of QIT allows multiple individuals to pool their excess income together, managed by a non-profit organization. The pooled income is then used to pay for the individual's care expenses. 2. Individual Qualified Income Trust: This is a QIT designed for those who do not wish to join a pooled income trust. The individual's excess income is placed into a trust account managed by a trustee, often a family member or a trusted advisor. The trustee is responsible for disbursing the funds to cover the individual's care expenses. Both types of QIT forms require strict adherence to Medicaid rules and regulations. It is essential to consult with a qualified attorney or Medicaid specialist to ensure proper completion of the QIT form and compliance with all necessary procedures.
