What is a qualified income trust (QIT)?

A qualified income trust (QIT) is a legal document that allows individuals with limited incomes who otherwise would not qualify for necessary medical services to receive the necessary care they need. It is used in the state of California to enable individuals who qualify for Medicaid and other government-funded assistance programs to continue to receive such benefits even if their income exceeds the amount of income required to be eligible for the program. A QIT is a trust fund set up under the California Medi-cal law which allows certain individuals to qualify for Medicaid benefits even if their income is above the applicable eligibility requirements. The QIT enables the trust funds to be used to pay for the required medical services. This trust also allows individuals to receive the benefits of income-based programs without reducing their monthly income eligibility for other services. In order to qualify for a QIT, a person must be a California resident, their income must be below a certain level, and they must be at least age 65 or disabled. The trust must be established by a qualified attorney or representative and must be approved by the California Department of Health Care Services. After the trust is established, the income of the applicant is divided equally between the trust and the applicant to ensure that the applicant can still access Medicaid coverage. The QIT provides a crucial service to California residents who may not otherwise be able to access essential health care services due to their income levels. Without the QIT, individuals may face costly medical bills or no access to the medications and treatments they need to remain healthy. The QIT is an important tool for those who cannot afford to pay for health care and qualify for Medicaid or other government assistance programs.

Related FAQs

What is a pour-over will?
What are the benefits of setting up a trust?
How can I prepare an estate plan?
What is a durable financial power of attorney?
How can I ensure my wishes are carried out after I am no longer able?
What is financial exploitation of the elderly?
What is an emergency guardianship?
How can I ensure my elderly parent is not being taken advantage of?
What are the laws regarding elder abuse?
How do I plan for long-term care and elder care needs?

What is a qualified income trust (QIT)?

Related FAQs

Related Blog Posts