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Elder care attorney Sarasota

How Can I Spend Funds in A Qualified Income Trust?

By Asset Protection Planning, Medicaid PlanningNo Comments

There are very specific rules regarding how the funds in a Qualified Income Trust (QIT) may be spent. It is very important that the Trustee ensures that only allowable expenses are paid out of the QIT account because if funds in the QIT are spent improperly, it could jeopardize the recipient’s Medicaid eligibility.

Only the following expenses can be paid out of a QIT account:

  1. The Patient Responsibility due to the nursing home (as determined by the Department of Children and Families)
  2. Health insurance premiums
  3. The Community Spouse Allowance (as determined by the Department of Children and Families)
  4. Medical expenses not covered by insurance (i.e. medical durable supplies, additional home health care agency hours, therapies not covered by Medicaid)
  5. Uncovered portions of an assisted living bills

If you have specific questions regarding managing a Qualified Income Trust account or your duties as the Trustee of a Qualified Income Trust, the experienced elder law attorneys of Bach, Jacobs & Byrne, P.A. are here to assist you. Call us at (941)906-1231 to set up a consultation.

June 2, 2020
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Does the Qualified Income Trust Need a Taxpayer Identification Number?

By Asset Protection Planning, Medicaid PlanningNo Comments

Some banks may request that you obtain a Taxpayer Identification Number for the Qualified Income Trust (QIT, also referred to as a Miller Trust).  However, In Part 21, Chapter 7, Section 13 of “Assigning Employer Identification Numbers (EINs),” the IRS specifically provides that “If the trust is a Miller type of trust, do not assign an EIN. Instead, inform the trustee that he/she must …Use the SSN of the beneficiary or trustee to report trust activities.” A Qualified Income Trust (QIT) is a “grantor trust”, which means that for tax reporting purposes, the trust’s finances are the same as the Settlor’s finances.  Therefore, the bank must use the Social Security Number of the Settlor (the Medicaid recipient) when setting up the QIT checking account.

If you have specific questions regarding establishing a Qualified Income Trust,  the experienced elder law attorneys of Bach, Jacobs & Byrne, P.A. are here to assist you. Call us at (941)906-1231 to set up a consultation.

June 1, 2020
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How much of my income should be deposited into the Qualified Income Trust?

By Asset Protection Planning, Medicaid PlanningNo Comments

The Trustee must deposit the amount of the Medicaid recipient’s income that exceeds the income cap into Qualified Income Trust (QIT) each and every month.  In 2020, the gross monthly income cap is $2,349.00. So, for example, if the Medicaid recipient’s gross monthly income was $4,000.00, the Trustee would need to deposit a minimum of $1,651.00 into the QIT each month.  If the Medicaid recipient’s gross monthly income was $4,500.00, the Trustee would need to deposit a minimum of $2,151.00 into the QIT each month.  In order to account for any discrepancies or fluctuations that may arise in monthly income, we always advise our clients to deposit more than the minimum amount each month.

Properly managing and funding a QIT is very important for maintaining Medicaid Eligibility.  If you have specific questions regarding funding a Qualified Income Trust account or your duties as the Trustee of a Qualified Income Trust, the experienced elder law attorneys of Bach, Jacobs & Byrne, P.A. are here to assist you. Call us at (941)906-1231 to set up a consultation.

May 29, 2020
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What Items Must Be Included in a Qualified Income Trust Agreement?

By Asset Protection Planning, Medicaid PlanningNo Comments

A Qualified Income Trust (QIT) agreement is a complex document that must meet specific requirements to be approved by the Florida Department of Children and Families. According to the applicable Florida regulations, a QIT agreement must:

  1. Be irrevocable,
  2. Require that all funds remaining in the QIT at the time of the death of the Medicaid beneficiary be paid to the State of Florida (up to the amount of Medicaid benefits paid on behalf of the Medicaid beneficiary),
  3. Consist of only the Medicaid applicant’s income, and
  4. Be signed and dated by the Medicaid applicant, the Medicaid applicant’s spouse, or someone who has the legal authority to act on the Medicaid applicant’s behalf.

If you think you may need to establish a Qualified Income Trust, the experienced elder law attorneys of Bach, Jacobs & Byrne, P.A. are here to assist you. Call us at (941)906-1231 to set up a consultation.

May 28, 2020
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How do I Establish A Qualified Income Trust?

By Asset Protection Planning, Medicaid PlanningNo Comments

A Qualified Income Trust (QIT) agreement is a complex document that must meet specific requirements to be approved by the Florida Department of Children and Families. The Florida Supreme Court has ruled that the preparation and execution of QIT is the “practice of law” and as a result, you cannot hire someone other than a Florida attorney to assist you with the planning and preparation of a QIT.

If you think you may need to establish a Qualified Income Trust, the experienced elder law attorneys of Bach, Jacobs & Byrne, P.A. are here to assist you. Call us at (941)906-1231 to set up a consultation.

 

 

May 27, 2020
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What is a “Qualified Income Trust”?

By Asset Protection Planning, Government Benefits, Medicaid PlanningNo Comments

As of January 1, 2020, in Florida, in order to qualify for Medicaid benefits, the applicant’s gross income must be less than $2,349.00 per month. In general, if the Medicaid applicant’s monthly gross income exceeds this amount, the applicant will be denied Medicaid benefits. The only current exemption to this barrier is the establishment of a “Qualified Income Trust” (QIT). A QIT is an irrevocable trust that can be established to receive the Medicaid applicant’s excess income.  Once the trust is established, a checking account is opened in the name of the trust. Simply put, establishing a QIT allows the applicant’s income to be exempt from the “income cap” by flowing the applicant’s excess income through a special checking account each month.

The QIT is irrevocable and cannot be changed after it is signed. Only the applicant’s income can be deposited into the checking account and only certain payments may be made out of the account. After the Medicaid recipient dies, the balance of the QIT will be paid to the State of Florida up to the total amount of Medicaid payments made on the recipient’s behalf.

If you have specific questions regarding asset protection planning and Medicaid eligibility, the experienced elder law attorneys of Bach, Jacobs & Byrne, P.A. are here to assist you. Call us at (941)906-1231 to set up a consultation.

 

 

May 25, 2020
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Elder Exploitation – Fla. Stat. §825.1035 – What is considered “Exploitation”?

By Elder LawNo Comments

On July 1, 2018, a new Florida statute, §825.1035, Fla. Stat., created a new legal process to protect vulnerable adults from exploitation. Exploitation is defined in §825.103(1), Fla. Stat., and includes:

  1. Using or trying to use a vulnerable adults funds or property with the intent to deprive the vulnerable adult of it, or to benefit someone else, by a person who is in a position of trust and confidence with the vulnerable adult, or by a person who has a business relationship with the vulnerable adult.
  2. Using or trying to use a vulnerable adult’s funds or property with the intent to deprive the vulnerable adult of it, or to benefit someone else, by a person who knew or should have known that the vulnerable adult lacks the capacity to consent.
  3. Breaching a fiduciary duty to a vulnerable adult by the vulnerable adult’s guardian, trustee, or agent under a power of attorney, which results in an unauthorized appropriation, sale, or transfer of property; or if the fiduciary violates the following duties:
    1. Fraud in appointment;
    2. Abuse of power;
    3. Wasting, embezzling or intentionally mismanaging assets;
    4. Acting contrary to the vulnerable adult’s sole benefit or best interests.
  4. Misappropriating, misusing, or transferring without authorization, funds from a bank account where the vulnerable adult was the sole contributor or payee of the funds. This applies only to personal accounts, joint accounts created with the intent that the vulnerable adult has all rights to the money deposited, or convenience accounts in accordance with §655.80, Fla. Stat.
  5. Intentionally or negligently failing to effectively use the vulnerable adult’s income and assets for the vulnerable adult’s support and maintenance by a caregiver or a person who stands in a position of trust and confidence.

If you believe that a Florida senior may be the victim of financial exploitation, contact the attorneys at Bach, Jacobs & Byrne, P.A. to discuss your options and legal remedies to end the abuse. Call (941) 906-1231 to schedule an appointment.

May 22, 2020
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Elder Exploitation – Fla. Stat. §825.1035 – Who does the law protect?

By Elder LawNo Comments

In July 2018, a new statute, §825.1035 Fla. Stat., created a cause of action for an injunction for protection against the exploitation of a vulnerable adult. The law is targeted at protecting “vulnerable adults.” According to §415.102(8) Fla. Stat., a vulnerable adult is “a person 18 years of age or older whose ability to perform the normal activities of daily living or to provide for his or her own care or protection is impaired due to a mental, emotional, sensory, long-term physical, or developmental disability or dysfunction, or brain damage, or the infirmities of aging.” It is important to note that this definition does not necessarily require that the person lack capacity to be considered a vulnerable adult.

If you believe that a Florida senior may be the victim of financial exploitation, contact the attorneys at Bach, Jacobs & Byrne, P.A. to discuss your options and legal remedies to end the abuse. Call (941) 906-1231 to schedule an appointment.

May 21, 2020
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My Dead Relative Received a Stimulus Check. How Do I Return It?

By Elder Law, Government Benefits, Probate, Tax LawNo Comments

According to the IRS, stimulus payment made to someone who died before receiving it should be returned to the government. If the payment was made to a single filer, the entire payment should be returned. If the payment was made to joint filers, and one spouse had not died before the receipt of the payment, only the portion of the payment made on account of the decedent should be returned. This amount will be $1,200.00, unless the joint adjusted gross income exceeded $150,000.00.

If the payment was a paper check and you have not cashed it:

  1. Write “Void” in the endorsement section on the back of the check.
  2. Mail the voided Treasure check to the appropriate IRS location, based on your state of residence. This information can be found at https://www.irs.gov/coronavirus/economic-impact-payment-information-center#more. If you live in Florida, the check should be mailed to:

         Austin Internal Revenue Service

3651 S. Interregional Hwy

Austin, TX 78741

  1. Do not staple, bend, or paperclip the check.
  2. Include a note stating the reason for returning the check.

If the payment was a direct deposit, or if the payment was a paper check and you have cashed it:

  1. Submit a personal check, money order, etc., payable to “U.S. Treasury,” immediately to the appropriate IRS location, based on your state of residence. This information can be found at https://www.irs.gov/coronavirus/economic-impact-payment-information-center#more. If you live in Florida, the check should be mailed to:

         Austin Internal Revenue Service

3651 S. Interregional Hwy

Austin, TX 78741

  1. Write “2020EIP” and the deceased recipient’s social security number on the memo line of the check.
  2. Include a brief explanation of the reason for returning the payment.

Fred Jacobs is a Florida Board Certified Tax Lawyer.  Contact Fred at Bach, Jacobs & Byrne, P.A. to discuss tax planning for you and your family. Call (941) 906-1231 to schedule an appointment.

May 20, 2020
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What are the 2020 ICP Medicaid Figures for Skilled Nursing Care?

By Asset Protection Planning, Elder Law, Medicaid PlanningNo Comments

Some ICP Medicaid eligibility figures for seniors in need of long term-care are tied to inflation. Each year, the Centers for Medicare and Medicaid Services release the updated eligibility figures. As of April 1, 2020, the eligibility standards are as follows:

Single Applicant Resource Allowance: $2,000

Institutional Spouse Resource Allowance: $2,000

Maximum Community Spouse Resource Allowance: $128,640

Minimum Monthly Maintenance Needs Allowance: $2,114

Maximum Monthly Maintenance Needs Allowance (this is the maximum spousal diversion allowed): $3,216

If you need legal advice for Medicare or Medicaid planning, estate planning, probate and trust administration or VA benefits, the experienced elder law attorneys of Bach, Jacobs & Byrne, P.A. are here to assist you. Call us at (941)906-1231 to set up a consultation.

May 18, 2020
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