This column discusses a unique area of the law that is known as “Medicaid planning.” This type of planning requires clients to look for ways to maximize means-tested Medicaid benefits. One of the most common ways to maximize Medicaid benefits is through “income reduction” techniques that often involve creating a Qualified Income Trust (QIT). These QITs are often referred to by many in the legal community as “Miller Trusts” after a court case that authorized this technique. There are also various special needs trusts that clients can set up to save assets without breaching the income requirements needed to maintain Medicaid eligibility. In order to take advantage of these financial planning techniques it is a good idea to consult with a professional estate planning attorney.
See Kyle Krull, What Do My Clients Need to Know About Medicaid Planning (for Starters, Anyway)?, Wealth Management, October 7, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
