Three Frequently Asked Questions About Income Trusts and Medicaid
For middle-class Americans, retirement doesn’t come easy. They don’t get the government-appointed benefits low-income houses might get, and they certainly can’t afford in-home or nursing home care with the money they’ve saved.
For these Americans, this is where medicaid comes in. With medicaid coverage through income trusts (also known as a Miller Trust or Qualified income trust), these necessities become more easily attainable. With this knowledge, questions about income trusts with medicaid planning run rampant. Here are a few commonly asked questions and answers to make this decision a little easier.
Does all my monthly income go into the income trust?
All that goes into your trust account is the amount of your current income limit that is set by the government. This limit depends on which long-term care programs you’re applying for. For instance, seniors who wish to apply for medicaid assistance with nursing home expenses, or who are seeking a wavier for in-home care, the income limit is $2,250 per month, or $3,375 for a married couple who are both seeking coverage. As a result, you would need to deposit around $950 per month into the trust.
Do I get to choose where the money comes from?
Many seniors receive income from more than one source each month — such as a retirement account, VA pension, or social security. All that matters is that any amount over the income cap that is spread among the different accounts is being placed into your trust account. You can deposit some checks automatically into your trust account, or you can have an automatic withdrawal set for each account that goes into your income trust.
Can I access the money once it’s placed into the income trust?
These funds can be used for things such as personal expenses, or to pay an allowance to a spouse. It can also be used to cover premiums owed for Medicare coverage, or any other number of uncovered health expenses.
If you still have questions, the best thing you can do is contact a professional elder law attorney that can help you with any and all of your planning. They will be able to help fulfill your personal needs for medicaid planning, wills, or anything else that falls under the umbrella of elder law.