What is a Qualified Income Trust?
In Ohio, there is an income limit to qualify for Medicaid (known as the “income-cap”). In 2025, the income-cap is $2,901. If a Medicaid applicant’s gross monthly income exceeds the income-cap, the applicant will not qualify for Medicaid benefits without first creating and funding a Qualified Income Trust (“QIT”). A QIT is an irrevocable income-only trust designed to reduce the amount of income that is counted by Medicaid for eligibility purposes.
How Does a Qualified Income Trust Work?
Once the trust has been established, the trustee must open a trust account at a bank in the name of the QIT. Then, the Medicaid recipient’s monthly income must be deposited into the trust account. From there, the trustee distributes the monthly income to pay for Medicaid’s allowable expenses, like the individual’s personal needs allowance, certain medical expenses, and the Medicaid co-pay.
How is a Trust Set Up?
Our qualified Medicaid planning professionals can assist you in establishing the trust and applying for Medicaid benefits. Contact us to get started.
