Nursing Home Medicaid FAQs

Q:  What is an Irrevocable Income Trust or What is a Qualified Income Trust Or What is a Miller Trust. These are the three most frequently asked questions when it comes to  Nursing Home Medicaid FAQs.

A. An  Irrevocable Income Trust (IIT), a Qualified Income Trust (QIT) and a “Miller Trust” are all the same thing. They are all three referred to as an “INCOME TRUST”. For purposes of Qualifying for Medicaid a Legal Document is prepared to list each of the gross incomes of a Medicaid applicant to determine what the total amount of gross income is received by that applicant. Then deducting from the total Gross Income amount what is called the “Income Cap” a minimum amount is determined to  be funded into an INCOME TRUST each month for every month of eligibility requested. The INCOME TRUST that is signed by the Applicant (Grantor) has terms and conditions that require all monies funded into the INCOME TRUST be paid to the NURSING HOME or Assisted Living Facility through the INCOME TRUST to reduce the amount of income in the eyes of the Department of Children and Families dollar for dollar. An account at the Bank is opened in the name of the INCOME TRUST and used to fund and pay the facility. In other words; if you put $10 in the INCOME TRUST checking account and then from the INCOME TRUST checking account you write a check to the Nursing Home for $10 as part of the Medicaid Applicants monthly co-payment you have effectively reduced the applicant’s income by $10.

Q: Why should I use Medicaid Eligibility Inc.?

A: Government benefit regulations are constantly changing. Most people don’t want to read volumes of governmental red tape criteria.  So we help you with assistance for correctly structuring assets or income to take full use and benefit of the rules. With our coordination and with an attorney from one of the Law Firms we can help you with that. We also help you with document collection and assist you with filling out your Medicaid application. In addition, we represent the client for any Medicaid caseworker interview and present the application for approval and follow up on caseworker requests. Nursing Home Medicaid FAQs and Definitions:

Q: What assets will Medicaid require I spend down so I can qualify for eligibility?

A: Cash, bonds, stocks, mutual funds, savings, property, life insurance cash values, and all other investment holdings. With prudent legal advice and planning from our work with a Medicaid attorney, you can preserve ALL of these assets.

Q: Are there still planning options possible after I’ve entered a Nursing Home

A: Yes. It’s still possible to protect the bulk, or all, of your life savings and be eligible for Medicaid benefits even after you’ve entered a Nursing Home

Q: Are my spouse’s income and assets included if I apply for Medicaid?

A: While your spouse’s income is not included in determining your eligibility, your marital assets would be considered. However, income and savings above maximum limits can be protected, and Medicaid Eligibility, Inc.’s coordination with an attorney can show you how.

Q. What assets are excluded from the Florida Medicaid eligibility asset test?

Nursing Home Medicaid FAQs and Definitions:

A. Homestead – The home is excluded if the spouse, or certain dependent relatives, continues to reside in the home, or the applicant intends on returning to the home.

Vehicle – One vehicle of any age may be excluded, along with a second vehicle if it’s over seven years old, and not an antique, luxury or custom model.

Life Insurance – If the total face value of all of the policies exceeds $2500, the cash value would be considered an asset. If the total face value of all of the policies is less than, or equals $2500, then the cash value would be excluded as an asset.

Burial Funds and Prepaid Funeral Contracts – In an irrevocable burial contract, the full value is excluded regardless of the amount. There is also a $2,500 exclusion of funds designated for burial expenses. A new bank account (e.g. John Smith Burial Account) may be established for this purpose. In addition, one burial plot is permitted for each family member.

Personal / Household Goods – These are items within the home such as furniture

Retirement Accounts – Money in these accounts are not counted in the asset test as long as they are properly structured.

Immediate Annuities – As long as they are properly structured, annuities are excluded from the asset test. If the annuity is not structured correctly, the family may tie-up assets and be denied Medicaid benefits. This is an important reason to contact a knowledgeable Medicaid Eligibility Practitioner

Ongoing Business Concerns – Since they generate income for the applicant that is ultimately contributed towards the cost of care as patient responsibility , ongoing business concerns are typically excluded as assets. Other real property that is rented or listed for sale is also excluded.

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