What is a qualified income trust (QIT)?

A Qualified Income Trust (QIT) is an estate planning tool used by individuals in South Carolina who have income over a certain amount. This tool allows them to qualify for Medicaid benefits, such as long-term care and nursing home expenses. The trust is set up with an account at a bank, and any income the individual receives is deposited into the trust. The trustee then manages the account and distributes the funds according to the trust’s terms. The purpose of a QIT is to lower the individual’s income so they can qualify for Medicaid. The trust’s terms must comply with the Medicaid rules; otherwise, the trust will not be valid. Generally, the trust must limit the individual’s income to $2,349 per month or less. Any additional income must be used to pay for the individual’s medical expenses, including nursing home care and other medical services. At the end of the trust’s term, all funds remaining in the trust are distributed to the individual’s heirs. The funds can also be used to pay estate taxes or other remaining balances. Overall, a QIT is an important estate planning tool that can help South Carolinians qualify for Medicaid. It is important to work with an attorney to ensure that the trust is properly set up and complies with all applicable laws.

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What is a qualified income trust (QIT)?

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