A Miller Trust: What Is It And Why You Might Need One

 calls mA Miller Trust could be crucial if you need Medicaid long-term care benefits, but your income exceeds your state’s published income cap which would render you ineligible.

Creating a Miller Trust can help you receive the benefits you need.

Additionally, this trust protects you and your assets without having to compromise your income.

An Irrevocable Trust

A Miller Trust is an irrevocable trust, which means you cannot change or cancel it. It helps you qualify for Medicaid long-term care benefits by holding excess income.

States use different names for a Miller Trust. In Arizona, it’s called an Income-Only Trust. Oregon calls it an Income Cap Trust. In New Mexico, it’s an Income Diversion Trust. Here in Georgia, it’s known as a Miller Trust or sometimes a Qualified Income Trust.

You place any income above Medicaid’s limit into the trust. Medicaid then does not count that income toward eligibility. This allows applicants to qualify for long-term care benefits.

How Miller Trusts Work

Like with other trusts, you assign a trustee to your Miller Trust. This would be someone other than yourself, perhaps your adult child, a friend or other family member. As you would with any trustee, you want to designate someone you trust will make financial decisions in your best interest.

The state in which you receive Medicaid long-term care benefits must be named the beneficiary of the Trust. Each month, all or a portion of your income will be deposited into the trust, depending on your state’s requirements. Your trustee will disperse money thereafter in compliance with state law and the guidelines set forth by the trust.

How To Determine If You Need A Miller Trust

Whether you need a Miller Trust depends on two key factors: where you live and your financial situation. If your income falls below your state’s limit, you can qualify for Medicaid long-term care benefits.

If your income exceeds the limit, the next step depends on your state’s rules. Some states follow a “medically needy” or “spend-down” approach. In these states, you can spend excess income on medical care until you meet eligibility requirements.

Other states use an “income cap” model. In these states, you must create a Miller Trust to qualify.

How Can I Set Up this Trust Account

Setting up a Miller Trust is complex and not something you should handle on your own. It’s best to consult an estate planning or elder law attorney. They can confirm whether you live in an income cap state and help you create a compliant trust.

In Georgia, an income cap state, you must use a Miller Trust if your income exceeds the limit. Without it, you may not qualify for Medicaid long-term care benefits.

We often include Miller Trusts in our clients’ estate plans. Many clients feel relief when they learn they can still qualify for benefits with proper planning.

If you would like to discuss setting up a Miller Trust to qualify for Medicaid long-term care benefits, give my office a call at 404-370-0696 and let us help you receive the benefits you need without compromising your income.

   

Looking to find an experienced estate lawyer in the Georgia area who is skilled in asset protection and estate plan preparation? Shannon Pawley is an attorney in Georgia with expertise in estate planning and asset protection. Shannon can provide assistance with creating an estate plan to include making a will and how to establish a trust properly. If you have questions about asset protection or questions about making an estate plan, reach out to Shannon and she will be glad to help answer all the estate planning questions you might have!