If you want to set up an estate plan, it is vital to closely examine your individual circumstances and determine the most sensible course of action. Whether you want to create a will or a trust, you have many options, and you need to carefully review your finances and what will happen after your death.
If you want to receive long-term care services from Medicaid but your income exceeds Medicaid’s limit, you could benefit from creating a qualified income trust. However, it is important to go over the ins and outs of this option first.
What is a qualified income trust?
According to the Texas Health and Human Services Commission, a qualified income trust can help people become eligible for long-term care services provided by Medicaid (such as care in a nursing home) even though they earn more than the special income limit. Qualified income trusts are irrevocable, and they can only include the individual’s income.
What happens to a qualified income trust after one’s death?
If you set up a qualified income trust, it has to have a provision that designates the state as a residuary beneficiary. After your death, the state will receive funds in the trust totaling the amount of funds that Medicaid paid for you.
This option could help you receive care you need, even though your income disqualifies you from assistance. Whether you are unsure if a qualified income trust is the right move or you want to make sure that you set up this trust correctly, it is pivotal to familiarize yourself with this strategy and find answers to any questions you have.