What is a NJ Qualified Income Trust?
What is a NJ Qualified Income Trust [Miller Trust]?
A Qualified Income Trust(QIT), also known as a Miller Trust, allows a New Jersey Medicaid applicant to place income above the New Jersey Medicaid income threshold [currently $2,199.00], which would normally disqualify them into a separate bank account each month. Because this income is owned by an irrevocable Trust, this excess income is not counted towards the applicants New Jersey Medicaid eligibility. To establish a Qualified Income Trust, [QIT, Miller Trust] the necessary Trust paperwork will need to be drafted, a separate bank account will need to be established and all excess income will need to be deposited into the account each month. There are many strict guidelines that need to be met in order for the QIT, Miller Trust to meet Medicaid eligibility guidelines.
What criteria must an applicant fall under to utilize a QIT, Miller Trust?
- An applicant whose income exceeds $2,199.00
- The applicant must meet all other eligibility guidelines for New Jersey Medicaid [such as: be clinically eligible and ave countable resources under $2,000.00 individual/$3,000.00 couple.
- Properly completed Trust documents must be drafted
What guidelines need to be met when establishing a QIT, Miller Trust in New Jersey
- A QIT can only be created by the applicant, Power of Attorney or legal Guardian;
- The QIT documents must state that the Trust is irrevocable;
- The QIT must have a Trustee and Successor Trustee assigned for administrative obligations; this individual may not be the Medicaid applicant;
- The State of New Jersey must be the first remaining beneficiary of funds upon the death of the Medicaid applicant;
- Only the applicant’s income may be deposited into a QIT, assets or income from a spouse are not allowed;
- The applicant may not split a deposit from the same payment source;
- The QIT must be funded in the month of the desired eligibility date;
- The QIT should be established by the last day of the month prior to the desired effective date;
- The Trust must be funded each month and by the last day of the month for every month that eligibility is needed;
- The maximum amount that can be deposited into the Trust when establishing the bank account is $20.00;
- Any month that income is not deposited into the trust will cause ineligibility for that month;
- If retroactive coverage is needed and the QIT was not established and/or properly funded, eligibility for retroactive dates will be DENIED;
- Income that is placed in the Trust can only be used to pay post-eligibility medical expenses. Any transaction other than that will nullify the trust and jeopardize New Jersey Medicaid eligibility for that month;
- All QIT’s are subject to the review and approval of Medicaid eligibility staff.
New Jersey Medicaid eligibility requires annual re-determinations, which means they we re evaluate the applicant's income and assets to ensure that they continue to meet all eligibility guidelines.
- Medicaid will request 12 months of trust statements for this re-determination ensure the trust has been properly funded each month. Medicaid can retroactively revoke eligibility for any month not properly funded.
For questions regarding a Qualified Income Trust, Miller Trust in New Jersey and a FREE Medicaid consultation contact us today
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