The QIT is an Irrevocable Trust that appoints a Trustee, other than the Medicaid applicant, to manage the QIT. Once the QIT is established, all of the Medicaid applicant’s monthly income will be deposited into the bank account that is owned by the QIT. The Trustee will manage the QIT and will assist with the monthly deposits into the QIT. Once the income is deposited into the QIT each month, the Trustee also has the duty to then transfer the bulk of the income to the local Medicaid agency. The local Medicaid agency will determine the total amount that is required each month, however it is typically the entire amount of monthly income minus a personal needs allowance (currently $63.10).
The QIT must contain a ‘payback provision’ allowing the Oregon Medicaid agency to recover the total amount the agency paid on behalf of the Medicaid applicant. Typically, the remaining QIT funds (if any) after the Medicaid applicant passes away will be subject to Medicaid’s claim.