Medicaid is a program for the poor. As such, Medicaid has both income and asset tests. In order to qualify for Medicaid, you must pass both tests. The nursing home resident cannot have more than $1809.00 per month (2006) in gross income from all sources. If you are over this amount, you may not qualify for Medicaid. However, there is a way to lower your income so that you will qualify: the Qualified Income Trust (QIT). The QIT usually receives all of the resident's income and then issues a $35.00 personal needs allowance check to the applicant with the remainder usually going to the nursing home (except for the option of a deduction for the applicant's supplemental insurance costs or for spousal diversion). There is a catch. Upon the death of the recipient, the excess that is retained in the trust first goes to reimburse Medicaid for its expenses. Only after Medicaid is 100% reimbursed will the trust then distribute any remaining monies to heirs. If there is not enough in the trust to reimburse Medicaid, then Medicaid may file a claim against the probate assets of the recipient. More on that later.

If you need a QIT, please contact one of our  elder law attornies. One word of caution, if the recipient is incapacitated, then a durable power of attorney or the spouse may be needed to create and fund the trust. Many durable powers of attorney do not contain provisions that allow the attorney-in¬fact to do this. The Florida Department of Children and Families will enforce this rule. Lastly, if the Medicaid recipient is married and the recipient is the major source of income for the couple, there are special rules that allow a community spouse (the well one) to take a portion of the institutionalized spouse's income if needed to make ends meet (spousal diversion).

• Example:    If you have $3000 per month in income and your spouse has $1500 per month income, you will not qualify for Medicaid. However, you could transfer all of your income to a QIT. The QIT would in turn issue you a check for $35.00 (personal needs allowance) and pay the nursing home the remainder as the patient responsibility amount (minus any spousal diversion or cost of supplemental health acre insurance). You would qualify for Medicaid. Upon your death, the surplus in the QIT would first reimburse Medicaid and second go to your heirs (if anything was left).

If you are a concerned relative or friend of an elderly person and need help with Estate Planning, Elder Law, or Medicaid and are in the Jacksonville, Orange Park, St. Augustine, Fernandina Beach or in the areas around Duval, St. Johns, Nassau, and Clay counties, we'd like to hear from you.

Contact us online or call us at 904-355-8888 TO SET UP A FREE CONSULTATION.

Contact us online or call us at 904-355-8888 also to learn more about Elder Law and receive our Free North Florida Nursing Home Guide.