Since August 1, 2016, all Ohio Financial Powers of Attorney (FPOA) should specifically allow the attorney-in-fact to create a Qualified Income Trust (QIT), also known as a Miller Trust, to allow the person creating the FPOA to qualify for Ohio Medicaid.
Very few FPOAs include this provision because there was no need for it until 2016. Now, however, any Medicaid applicant with monthly income above 300% of SSI ($2,205 in 2018), will not be eligible for Medicaid without a QIT.
If the Medicaid applicant is not competent and cannot create their own QIT, then someone else must do it for them. The problem is, that person must have legal authority to do so by either being the attorney-in-fact under the incapacitated person’s FPOA or by being named guardian by the probate court.
Medicaid recipients in nursing homes, assisted living and those receiving Home and Community Based Services (HCBS), such as PASSPORT, are all affected.
Make sure you update your FPOA to include this provision! Call Golowin Legal today to set an appointment.
In 2018, if a Medicaid applicant has monthly income of above $2,205, they must set up a Qualified Income Trust (QIT) and meet all other eligibility criteria to receive Medicaid benefits. This catches many applicants off guard because they may have zero savings but be ineligible for Medicaid solely because their Social Security and/or Pension monthly total is over $2,205.
A QIT (sometimes called a “Miller Trust”) is a legal arrangement that allows the Medicaid applicant to put some of their income into the QIT, which is then generally used to pay for the applicant’s medical expenses. When a QIT is properly set up and managed, the income placed into it is not counted when Medicaid eligibility is determined!
A QIT must be:
Funded by income only
Cannot contain other assets
Name the State as beneficiary upon death
Once the QIT is set up, a QIT bank account will need to be established. Then, each month the Medicaid applicant will transfer some of their monthly income to the QIT and the Trustee will use the money placed into the QIT to pay for medical expenses (or other permissible expenses) in the same month the money is placed into the QIT.
QITs are not very complex to establish, but can be confusing to implement correctly. If you need assistance establishing and implementing a Qualified Income Trust for yourself or a loved one, contact Golowin Legal today at (614) 453-5208.