Becoming Eligible for Medicaid in New Jersey Despite Exceeding the Income Limit: A Guide on Qualified Income Trusts

The Chamberlain Law Firm


Navigating the complex world of Medicaid eligibility in New Jersey can be challenging, especially when you find yourself over the income limit. However, there are legal strategies that can help you become eligible for Medicaid, such as establishing a qualified income trust (QIT). In this article, we’ll dive into the details of New Jersey Medicaid eligibility, the benefits of QITs, and how they can help you qualify for much-needed medical assistance.

Understanding New Jersey Medicaid Eligibility

Before we discuss QITs, it’s important to understand the basic New Jersey Medicaid eligibility requirements. To qualify for Medicaid, you must meet specific income and asset limits. These limits vary depending on factors such as your age, household size, and disability status.

In general, as of 2023, the monthly income limit for a single individual applying for Medicaid in New Jersey is $1677. If your income exceeds this limit, you may still be eligible for Medicaid through a QIT, which we will discuss in the next section.

What is a Qualified Income Trust (QIT)?

A QIT, also known as a Miller Trust, is a legal arrangement specifically designed to help individuals become eligible for Medicaid when their income exceeds the allowed limit. By establishing a QIT, excess income is deposited into the trust, which is then used to pay for specific medical expenses and care services.

How to Establish a Qualified Income Trust in New Jersey

To create a QIT in New Jersey, follow these essential steps:

  1. Consult with an experienced attorney: Setting up a QIT involves a complex legal process, and it’s essential to work with an attorney who specializes in Medicaid planning and elder law to ensure everything is done correctly.
  2. Draft the trust agreement: Your attorney will help you draft a trust agreement that outlines the terms and conditions of your QIT, including the appointment of a trustee who will manage the trust.
  3. Open a QIT bank account: Once the trust agreement is complete, you’ll need to open a separate bank account in the name of the trust. This account will be used to receive and disburse funds according to the terms of the QIT.
  4. Deposit excess income: After the trust account is open, you’ll need to deposit your excess income into the account each month. This will bring your countable income below the Medicaid limit, helping you qualify for benefits.
  5. Complete a Medicaid application: Finally, you’ll need to complete a Medicaid application and submit the necessary documentation, including your QIT agreement, to your local Department of Social Services office.

The Benefits of a Qualified Income Trust

Establishing a QIT offers several benefits, including:

  1. Medicaid eligibility: The primary advantage of a QIT is that it allows you to qualify for Medicaid despite having an income that exceeds the limit.
  2. Financial management: A QIT can help you manage your finances more effectively by ensuring that your excess income is used to pay for necessary medical expenses and care services.
  3. Legal protection: By working with an experienced New Jersey Medicaid attorney to create a QIT, you can ensure that you’re complying with all relevant laws and regulations, protecting yourself from potential legal issues.


If your income exceeds the Medicaid eligibility limit in New Jersey, a qualified income trust may be the solution you need to access essential medical care. Contact our experienced attorneys today at or call (201) 249-6716 to schedule a consultation to protect your assets and secure the care services that you or your loved ones require.

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