Description:

Qualified Income Trusts (QITs) were established by the Omnibus Budget Reconciliation Act of 1993 and found in the Social Security Act at Section 1917 (d)(4)(B). (42 U.S.C. § 1396p(d)(4)(B)). The State of New Jersey adopted the use of QITs effective December 2014.

When an individual's monthly income above 300% of the Federal Benefit Rate (FBR) is placed in a QIT, it is not counted when determining Medicaid financial eligibility. Applicants that may consider using a QIT must be in need of an institutional level of care and can be living in a nursing facility, an assisted living facility or in their home. Costs of care vary according to these living arrangements.

QITs must meet certain conditions such as:

They must contain only income of the individual;
They must not contain resources such as income from the sale of real or personal property or money from a savings account;
They must be irrevocable;
They must have a trustee to manage administration of the Trust and expenditures from the Trust as set forth in federal and state law;
New Jersey must be the first beneficiary of all remaining funds up to the amount paid for Medicaid benefits upon the death of the Medicaid recipient; and,
Income deposited in the QIT can only be used for the specific Post-eligibility Treatment of Income and to pay for the approved cost of care.