Nashville Qualified Income Trust Lawyer

Nashville Qualified Income Trust Attorney

Many individuals who are in need of long-term care, such as at-home care or assisted living care, need Medicaid to afford care. Despite needing this support, individuals may not have a low enough income to qualify for those benefits. This is a difficult position to be in, but there are options. A skilled Nashville qualified income trust lawyer can help you review the benefits of creating such a trust or other estate planning options.

You may be planning ahead for your own care or determining the options for a loved one. Proper estate planning for adults expecting long-term care can be complicated, particularly when you are trying to receive the necessary benefits for expensive care. Working with the right attorney is crucial to protecting your interests or the interests of your loved one.

Estate Planning for Medicaid Benefits

Creating a QIT must be done correctly and by a licensed and skilled attorney. Emmack Probate and Estate Law Group has nearly a decade of legal experience, including years of practical estate planning experience, supporting families in and around Nashville. They can guide you through the process of creating a QIT and answer any questions you have about estate planning and trusts.

Attorney Shanone Emmack has helped many people create comprehensive estate plans. She can help you incorporate a QIT into an existing estate plan or build a complete estate plan with this and other trusts.

What Is a Qualifying Income Trust in Tennessee?

A qualifying income trust (QIT) in Tennessee, also called a Miller Trust, is a form of irrevocable trust that holds a portion of an individual’s monthly income. If you are receiving Medicaid TennCare CHOICES benefits, then there is a monthly income cap for receiving these benefits. A QIT holds the portion of income that exceeds this cap, enabling you to receive vital benefits.

A trust is a legal entity that can hold assets, so they are not in the individual’s direct ownership. In estate planning, this is often used to keep assets from entering probate. A QIT is used to ensure the assets are not in your name, so your income is under the set cap. QITs are most often used by individuals who are expecting to need long-term care in the future and are unable to afford the significant costs of that care. Applying for Medicaid can cover the costs of that care.

A QIT must be irrevocable, which means they cannot be altered once they are created unless specific qualifications are met. They also must be made years in advance before applying for TennCare benefits. The assets in a QIT are meant to be used for the costs of an assisted living facility or at-home care. A QIT is not meant to be used to protect assets from use.

How Do You Set Up a QIT in Tennessee?

The creator of the trust, or the grantor, must set up the trust and name someone other than themselves as the trustee. The grantor is the individual benefiting from the trust, and it is their income that will go into the trust. Then, the document is taken to the bank. It’s important that the bank is one that accepts QITs. The QIT must have at least an income that exceeds the Medicaid limit, but it can have more than that.

The trustee of the QIT is responsible for the assets in the trust, and has a fiduciary duty to act in the interests of the beneficiary. The trustee is responsible for ensuring a portion of the grantor’s income is placed into the QIT each month. They are also responsible for paying for assisted living, at-home care, or other approved costs with the funds from the trust.

The Requirements of a QIT

In order to have a valid QIT for individuals over the age of 65 in Nashville, the following requirements must be met:

1. It is irrevocable
2. It is only composed of a pension, Social Security income, or other income of the individual that benefits from the trust
3. It does not contain other resources
4. There is a trustee managing the account
5. When the individual benefiting from the trust dies, the remaining funding in the trust is paid back to Medicaid, as much as equals the amount paid to the individual by Medicaid
6. The expenses are only used for the approved expenses

If the trust does not meet these requirements, it can be invalidated, causing financial hardship for individuals and their families. It’s important to work with an attorney who has experience establishing and maintaining these trusts. This helps protect your interests and can give you more certainty in the financial well-being of your loved ones.

What Is the Benefit of an Attorney While Establishing a QIT?

An estate planning attorney is a necessary ally when creating any type of trust, including a QIT. Trusts can be complex and expensive, but that cost and time are negated if the trust isn’t created and managed properly. This is even more important when creating a QIT, as any mistake could mean it isn’t a valid QIT. Then, the assets may be considered part of the individual’s income, and they are unable to recover benefits. Although it can be costly to work with an attorney, it can be much more expensive not to.

A QIT allows you or your loved one to get the right care for them without putting them in a financially draining situation. It may even protect some of your assets for the benefit of your loved ones in the future. Working with an estate planning attorney to create a QIT can also inform you of your other estate planning options, which can financially benefit you and your family.

Preserving Your Financial Interests with Effective Estate Planning

It’s crucial to carefully plan the long-term and future care of yourself or your elderly loved ones. Emmack Probate and Estate Law Group has worked for years to provide personalized and detail-oriented care for individuals and their families. Estate plans can be simple or complex, and can be tailored to your unique needs.

Attorney Shanone Emmack and her team can guide you through the positives and negatives of a QIT in your circumstances and review alternate or additional estate planning tools which can support your own financial interests and your family’s financial future. Contact the firm today.