Everything you need to know about a Qualified Income Trust

For many of us, the rising cost of nursing home care and assisted living is worrying. These costs, which on average amount to $330 a day, risk draining all our life savings and leaving nothing on which to enjoy our final years or help care for our loved ones after we’ve passed. While Medicaid can help alleviate this financial pressure, it can be difficult to qualify for this assistance. Fortunately, the federal government has recently allowed the use of Qualified Income Trusts (QITs) to help plan for Medicaid assistance.

What is a QIT? 

This is a legal trust into which individuals pay an income each month. This income will not be counted as part of the Medicaid assessment process. It is an irrevocable trust, so it cannot be modified after its creation and, in New Jersey, the State needs to be listed as the first beneficiary of the trust in the event of the death of whoever created the trust, giving them the right to claim on any remaining income.

It is an income exclusive trust, however, so you cannot place cash, proceeds from the sale of assets (such as your home) or assets themselves into a QIT. Income can include pensions as well as Social Security payments.

How does this affect Medicaid eligibility? 

If your gross income exceeds $2,199 per month, you will qualify to have a QIT (keeping in mind that these figures are subject to change). This income, which can include a full income or a portion of your income, will no longer be used in eligibility calculations, making it easier to qualify. All other criteria will still be in place, however, such as citizenship, residency and level of care requirements.

Expert Medicaid planning, application and assistance in NJ 

Frank R. Campisano is highly experienced and compassionate elder law attorney with considerable knowledge of Medicaid issues. In addition to planning ahead financially for Medicaid eligibility, he is also able to assist with applications, appeals and other Medicaid issues.

For a free consultation, please contact us today and speak to Frank R. Campisano at https://www.scclegal.com/

 

Estate planning in NJ: The right way to include your home in a living trust

Estate law is fairly complex and people can quickly run into significant issues when their assets aren’t correctly included in their estate plan. Here are some tips from a leading New Jersey estate planning attorney.

If your home is incorrectly included in a living trust, then you and your beneficiaries may run into problems that include:

  • Your home going through probate because the trust fails to correctly identify the property.
  • Your wishes may not be clear, allowing the State to distribute your home according to State law rather than the rules of the trust. This can happen when your home is not listed as a trust asset even if your Last Will and Testament declares that everything should go to a certain beneficiary.

This can lead to delays on your estate as well as increased legal fees as your family and loved ones have to approach the courts to legally correct this error.

If you want to include your home in your living trust, always check: 

  • That you have signed and notarized a new deed when you create your trust.
  • That your home is listed with its full address in your trust in the schedule of assets.
  • That the name of your trust on the new deed matches the name of your trust exactly.
  • That your trust is listed as the insured on your home’s insurance policy.

Have your living trust set up by an experienced NJ estate planning attorney 

If you would like further guidance on creating a revocable living trust or a Last Will and Testament, Frank R. Campisano can provide you with the necessary expert legal advice and professional insight.

In addition, he can also assist you with all other aspects of your estate plan, from drawing up medical directives and Power of Attorney documents to Medicaid planning. For more information on setting up or changing an estate plan, please contact Frank at the law firm of Sedita, Campisano & Campisano, LLC in New Jersey or visit our website at https://www.scclegal.com/

 

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