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.
The Kentucky Qualified Income Miller Trust, also known as the QIT, is a legal tool designed to help individuals qualify for Medicaid benefits while still having a higher income than is typically allowed. This trust allows individuals to allocate their income into a separate trust account, which is used to pay for their medical expenses and long-term care services. There are two main types of Kentucky Qualified Income Miller Trusts: the Income-Only QIT and the Combined QIT. 1. Income-Only QIT: This type of trust is specifically designed for individuals who have income that exceeds the Medicaid eligibility limits. The person's excess income is directed into this trust, and the funds can only be used to pay for medical and long-term care expenses. The individual can still qualify for Medicaid benefits while utilizing this trust. 2. Combined QIT: Unlike the Income-Only QIT, the Combined QIT not only includes the excess income but also allows the individual to include their countable resources in the trust. Countable resources are typically assets such as cash, bank accounts, real estate, and investments. By including both income and countable resources in the trust, it becomes easier for the individual to qualify for Medicaid benefits. The Kentucky Qualified Income Miller Trust is a valuable tool for individuals who wish to access Medicaid benefits but have income or assets that exceed the eligibility limits. By utilizing these trusts, individuals can effectively manage their finances while still receiving necessary medical care and long-term support. It is important to consult with an attorney specializing in elder law or Medicaid planning to ensure compliance with the complex rules and regulations governing these trusts.
