What is a qualified income trust (QIT)?

A qualified income trust (QIT) is a legal document that helps elderly people in Maine who have too high of an income to qualify for certain benefits. A QIT allows these people to put their income into a trust which is then used to pay for their medical and living expenses. This method of protection of assets is recognized by the Maine Department of Health and Human Services (DHHS). When a person creates a QIT, the trust agreement specifies how the income and assets received by the trust are going to be used. The trust usually pays for living expenses such as food, clothing, housing, and medical bills. Any money left over after those necessary expenses are paid is saved so that it can be used for future needs. In order to qualify for a QIT, a person must have an income that does not exceed a certain amount. This amount is set by DHHS and differs depending on the type of assistance the person is looking for. Additionally, the person must be over 65 years old, have assets worth less than a certain amount, and must not have certain types of income such as Social Security or VA Pension. QITs are governed by rules set by DHHS and they must be administered according to those guidelines. A QIT can be revoked at any time by the DHHS if it is not being managed properly or if the person’s income or assets exceed the allowable limits. Thus, it is important to ensure that QITs are managed carefully and that all necessary documents are in place.

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What is a qualified income trust (QIT)?

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