Understanding Qualified Income Trust in Florida

If you or a loved one earns too much to qualify for Medicaid in Florida, there's a solution. It's called a Qualified Income Trust, also known as a Miller Trust. This legal tool allows you to meet Medicaid's strict income limits so you can get help paying for nursing home care.

Even being a dollar over the income limit could cause Medicaid to deny your application. However, a QIT offers a path to eligibility. Once you establish a QIT and properly find it, the excess income no longer counts against the limit. Let's explore how a Qualified Income Trust can help you obtain Medicaid eligibility.

What Is a Qualified Income Trust (QIT)?

A Qualified Income Trust is a type of irrevocable trust. The legal structure allows people to transfer excess income to the trust's account. By placing the income in the trust, you get a path to meet Medicaid's income limits for long-term care coverage. It's a solution for individuals who exceed Florida's Medicaid income cap but still require assistance with nursing home care expenses.

You may also hear attorneys refer to it as a Miller Trust, named after a court case that established the right to use this strategy. Whatever you call it, these trusts offer people a powerful tool for obtaining Medicaid eligibility.

Florida Medicaid Income Limits

To qualify for Medicaid in Florida, an applicant must meet both asset and income requirements. As of 2025:

  • Monthly income limit: $2,829 per month
  • Asset limit: $2,000 in countable assets

If your income is even slightly over that monthly threshold, you will not qualify. That's where establishing a QIT can be valuable.

For official Medicaid financial standards, refer to Florida's Medicaid eligibility overview. Just remember, reading the rules is not the same as applying them correctly. That's where legal help makes a difference.

What Is a Miller Trust?

A Miller Trust and a Qualified Income Trust are the same thing. It is a special, irrevocable trust set up to hold only the portion of your income that exceeds Florida's Medicaid income limit.

Once that income is in the QIT, it no longer counts against you for eligibility purposes. Without this step, Medicaid will deny your application, even if you meet every other requirement.

How a Medicaid Qualified Income Trust Works

Here's how the process typically unfolds:

  1. Legal Drafting: The law requires specific language for the trust to be compliant with Medicaid rules.
  2. Bank Account: You must open a separate account for the trust.
  3. Trustee Appointment: Someone, usually a spouse or adult child, will act as trustee to manage the funds.
  4. Income Deposits: Each month, the applicant's income exceeding the Medicaid limit transfers into the trust account.
  5. Permissible Use: The individual must use the funds for care costs, nursing home payments, or spousal support.

If any of these steps are skipped or mishandled, the trust may be invalid, and the state may deny your Medicaid application.

Mistakes to Avoid When Setting Up a QIT

Families often come to me after trying to set up a QIT on their own or with the help of a general financial advisor. Unfortunately, even small mistakes can lead to major delays or ineligibility.

Common issues include:

  • Using the wrong trust template
  • Failing to fund the trust monthly
  • Naming the wrong person as trustee
  • Using QIT funds for non-approved expenses
  • Not creating the QIT until after submitting the Medicaid application

Getting this wrong could cost you thousands in unnecessary nursing home fees. When done correctly, a QIT is a powerful tool that protects your Medicaid eligibility and reduces out-of-pocket costs dramatically.

When to Set Up a Qualified Income Trust

The decision to set up a Qualified Income Trust comes when evaluating your Medicaid eligibility. The moment you realize your income is over the cap, you should start planning to establish a QIT. Ideally, the trust is in place and funded before you submit your Medicaid application.

However, a QIT can still be a solution even if you are already in the application process. It can even be a solution if Medicaid denied a previous application for excess income. With the right support, you might be able to establish a QIT, correct issues, and move forward with the process.

FAQs: Qualified Income Trusts in Florida

What is a Qualified Income Trust used for?

Medicaid applicants who earn more than the state's income cap can use QITs to qualify for long-term care coverage. It diverts excess income into a trust account so that it no longer counts against the applicant.

What is the difference between a QIT and a Miller Trust?

They are the same. "Miller Trust" is an older legal term based on a court ruling, while "Qualified Income Trust" is the official Medicaid term in Florida.

Can I set up a QIT without a lawyer?

Technically, you can establish your own QIT. However, it is risky. The trust must follow very specific legal language and have proper management. Mistakes are common and often costly. Working with a Medicaid attorney ensures compliance and avoids denial.

Get Help Setting Up Your Qualified Income Trust

Do you need Medicaid to help with long-term care costs? Is your income over Florida's Medicaid income limit? A Qualified Income Trust could be the key to accessing the support you need.

I'll guide you through every step to ensure compliance and eligibility. From drafting the trust to setting up an account, we can help you obtain eligibility.

You don't need to lose coverage because of a paperwork issue. Schedule a Medicaid consultation now and protect your family's future.

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