Attorneys in Tennessee for Qualified Income Trusts
Developing an estate plan that outlines how your assets will be divided among your heirs and how your final wishes are to be carried out is among the most important things you can do in your lifetime. However, comprehensive estate planning is about much more than what will happen upon your death. Your estate plan should also account for and set up the care you will need as you get older.
At the offices of Douglass & Runger, Attorneys at Law, our skilled estate planning lawyers will help ensure that you have the resources you need to qualify for the long-term care you might need while protecting your assets and without putting additional financial burdens on your loved ones.
Looking Towards The Future
Many American adults will need some type of long-term care during their lives, whether this care is provided at home, in a nursing home, or at an assisted living facility. With this in mind, and based on your medical history, it is advisable to appoint a durable power of attorney for healthcare so that you have someone you trust who can make medical-related decisions for you in the event you are unable to make them for yourself. A living will can also be helpful to provide additional details about the type of care you wish to receive.
You will also need to set up a plan for how the care you need will be paid for. A living trust can be used, but there are some other options you might have that can allow you to pass more of your assets on to your loved ones. Among these options is a Qualified Income Trust (QIT), which is most often used to help those who are applying to Medicaid for long-term care coverage.
Medicaid Planning And Qualified Income Trusts
For many people, Medicaid is the primary option for paying for long-term care, as other government programs, such as Medicare and Social Security, do not cover long-term care expenses. Medicaid, however, has very strict income limits, and exceeding those limits will disqualify the applicant from receiving any benefits. This is where a Qualified Income Trust—also known as a Miller Trust—can be helpful.
If your income is projected to exceed the Medicaid qualification limits, a qualified estate planning lawyer from our firm can help you structure a QIT to which you can transfer any income that goes over the Medicaid monthly limit. It is important to get started on creating your QIT several years before you think you might need it because Medicaid uses look-back periods to determine an applicant’s income eligibility.
It is important to structure a Qualified Income Trust properly because any mistakes could affect your Medicaid eligibility, which could leave you responsible for the costs of your long-term care. For the same reason, your QIT must also be managed properly once it is established. The trustee you choose to manage the trust must be trustworthy and capable, and our team can help you select the right person or entity.
Work With a Memphis Medicaid Planning Attorney
Before making any decisions about your possible long-term care needs, it is best to sit down with a skilled estate planning lawyer to discuss your unique situation. Your attorney can help you determine the right planning solutions for your specific needs, as well as assist with the creation of all necessary instruments.