A Brief Introduction to Miller Trusts

If you or a loved one is having trouble meeting the means test to qualify for Medicaid, there is an option to look into. A Qualified Income Trust, more commonly called a Miller Trust, allows those whose income exceeds the income cap for Medicaid to qualify. This is most commonly used when someone needs to enter a nursing or assisted living facility. The costs of these facilities are often significantly higher than the patient’s monthly income, even though their income is higher than the cap.

How Does the Miller Trust Work?

When a Miller Trust is set up, the income of the person who requires the trust will be deposited directly into it each month. From the trust, a payment will be issued to the nursing home or other care facility. Any additional payments remaining that are required to cover the expenses will then be made by Medicaid. This process ensures that an individual is able to qualify for Medicaid and get the care they need without having to reduce their income.

Payments from the Trust

While the trust is set up in order to have the money sent to the nursing home facility, there are some additional payments that can be made before the remainder is sent to the nursing home. There is a personal needs allowance of $60 per month that is permitted. This money can be spent in any way the individual would like, or even saved. If the individual who requires the trust is married, they can also ‘pay’ their spouse a portion of their income to help support them and their assets. Certain health insurance related premiums can be paid as well.

Setting Up a Miller Trust

It is important to ensure your Miller Trust is set up properly to ensure you, or your loved one, is able to keep as much of their income as possible. While the majority of it will go to fund the expenses of their long-term care, it is best to keep that as low as possible since the remainder of the bill will be picked up by Medicaid anyway. In addition to setting these trusts up correctly, it is also important to have them created in a timely manner since until they are in place, Medicaid won’t cover the costs of care.

Amsberry Law Firm is Here for You

If you or a loved one requires long-term care, or you believe that this may be necessary in the near future, please don’t hesitate to contact Amsberry Law Firm. We will go over your income levels, the approved expenses, and all other aspects of a Miller Trust and get it created for you right away.

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Written by Amsberry Law Firm

Amsberry Law Firm

Mr. Amsberry is board-certified in labor and employment law by the Texas Board of Legal Specialization. He is a proven litigator who has argued before the United States 5th Circuit Court of Appeals and earned favorable outcomes in complex, precedent-setting employment and civil rights cases. He served as a reservist assistant judge advocate general in the U.S. Army and is a sought-after lecturer and speaker on a range of legal issues.

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