Upon the death of a beneficiary, remaining funds in a QIT must be paid to whom?

The correct answer is that upon the death of a beneficiary, the remaining funds in a Qualified Income Trust (QIT) must be paid to the state Medicaid program. This requirement is grounded in the principle that QITs are often used to facilitate eligibility for Medicaid while preserving certain income for the beneficiary's specific needs.

When a beneficiary passes away, any remaining funds in the QIT become subject to Medicaid's claim for reimbursement. This aligns with the American Recovery Act, which allows states to recover costs from the deceased's estate, thereby ensuring that the state can recoup funds spent on their care. This process underscores the importance of understanding Medicaid’s rights concerning QITs, ensuring that public funds are adequately accounted for after the beneficiary's death.

Remaining options do not apply because the funds in a QIT are legally obligated to revert to the state under these circumstances, rather than being distributed to heirs, charitable organizations, or funeral homes.