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Why a Medicaid Trust or QIT Can Save Your Family Thousands (and Secure Your Care)

If you’re a senior or living with a disability, applying for Medicaid can feel like navigating a maze blindfolded. You might think, "I only make $2,000 a month in Social Security, of course I’ll qualify!" But as many families quickly discover, Medicaid's strict financial rules can trigger an unexpected denial, leaving you on the hook for thousands of dollars in medical or nursing home bills.


The good news? A denial isn't the end of the road. By utilizing legal tools like Medicaid Asset Protection Trusts (MAPTs) and Qualified Income Trusts (QITs), you can legally restructure your finances, qualify for benefits, and save your family’s life savings in the long run.


Here is why these trusts are essential for your financial survival.


A wooden desk displaying elder law planning documents. On the left is a stack of medical bills and a Social Security document. On the right is a brown leather binder embossed with "Qualified Income Trust" and a bank deposit bag. In the center, a wooden gavel rests on a "Medicaid Asset Protection Plan" document.

1. Medicaid Looks at Both Income and Assets

To qualify for Florida Medicaid Long-Term Care in 2026, an individual applicant must meet two strict financial limits:


  • The Income Limit: Gross monthly income cannot exceed $2,982.

  • The Asset Limit: You are only allowed to have $2,000 in countable assets (like cash in the bank, stocks, bonds, or extra vehicles) at any point during the month.

Many applicants are shocked to learn that even if their monthly income is incredibly low, having just $2,005 in a checking account on the wrong day of the month will trigger an automatic denial.


2. The Solution for "Too Much Income": The QIT

If your monthly income from pensions, Social Security, or IRAs exceeds the state's income limit, you are legally considered "over income." However, this does not mean you have to private-pay for a nursing home.


  • What it is: A Qualified Income Trust (QIT), also known as a Miller Trust, is a special bank account designed to hold your excess income.

  • How it saves you money: By depositing your excess income into the QIT each month, Medicaid no longer counts it against your eligibility limit. This allows you to qualify for Medicaid to cover the bulk of your expensive long-term care, rather than draining your own wallet to pay a $10,000/month nursing home bill.


3. The Solution for "Too Many Assets": The Medicaid Trust

If you have a lifetime of modest savings, a second property, or cash surrender value in a whole life insurance policy, Medicaid expects you to "spend down" those assets on your own care before they will step in to help.


  • What it is: A Medicaid Asset Protection Trust (MAPT) is an irrevocable trust where you can place your assets.

  • How it saves you money: Once assets are properly transferred into a MAPT (and outlive Medicaid's standard 5-year look-back period), they are no longer legally yours in the eyes of the government. This means your $2,000 limit is safe, and your hard-earned savings are preserved for your spouse (to prevent spousal impoverishment) and eventually your children. You get the care you need without bankrupting your family.


4. Avoiding Costly Application Errors

As elder law attorneys often point out, a massive percentage of Medicaid denials aren't because you are truly unqualified—they happen because of red tape. The Department of Children and Families (DCF) might deny you due to:


  • Lack of specific documentation.

  • Forms not filled out exactly how DCF wants to see them.

  • Retirement accounts not being structured to pay out properly.


If you receive a denial letter, do not panic and do not immediately start paying out of pocket. The letter will state the exact reason for your denial. You typically have an appeals window (often 30 days) to correct the error, provide the missing paperwork, or execute a legal fix.


The Bottom Line

Medicaid planning is not a DIY project. The rules change constantly, and a single mistake can cost your family tens of thousands of dollars. Partnering with an experienced Elder Law attorney to set up the right trusts will ensure you stay under the limits, reverse unfair denials, and protect your family's financial future. Schedule a Free Consultation with our atCause Law legal team to see what the best way would be to help you and your family.

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