The following email brought up some interesting discussion. Please check with your state laws regarding Medicaid requirements.

Posted 08/25/2017

Michael from Ohio

Is Georgia an income cap state for Medicaid purposes that uses Qualified Income Trusts (QITs) to qualify for Medicaid?

Answer: Yes

We have a client who is receiving VA pension benefits. A fiduciary has been appointed for the veteran; the VA is depositing the pension benefit directly into the fiduciary account. The VA wants all expenditures directly made out of the fiduciary account.

We have now established a QIT to qualify the veteran for Medicaid. Medicaid wants the assets from the VA fiduciary account transferred to the QIT with all expenditures made out of the QIT. This contradicts what the VA wants.

My question: Will there be any issue with VA if we do what Medicaid wishes and transfer the veteran’s income (including the pension benefit) into the QIT using all the monies for the veteran’s care?

Answer: I would transfer the VA pension from the VA account to the QIT. If the VA asks questions explain that this is how Medicaid requires medical to be paid. Keep in mind that the VA does not understand or care about any rules but their own. During the penalty period, the VA pension will continue but once Medicaid is approved, the pension will drop to $90.00 per month.  This will cause over-payment for the period from the date Medicaid begins and VA is notified of that approval.