What is a "Miller Trust" or "Qualified Income Trust"?

If a Medicaid applicant's income exceeds the lawful amount for Medicaid eligibility ($2130 per month effective Jan. 1, 2013), a Qualified Income Trust must be created with the applicant's income in order to create eligibility for long-term nursing home care benefits.  This instrument is also called a Miller Trust. This is an irrevocable trust.

The income of the Medicaid applicant which exceeds the eligibility criteria, is placed in the trust, and someone other than the applicant is the trustee. The trust income will be disposed of in accordance with the directive of the Florida Department of Children and Family Services, after the applicant has applied and been approved for Medicaid . Generally , the applicant will be allowed to retain $35 per month of the income; may be entitled to divert some of the income to the community spouse if the spouse's income falls below $1,822.00 per month; and pay a fixed amount towards his patient's responsibility for nursing home care.

The Qualified Income Trust may be created by the applicant, if the applicant is competent to do so;  by the applicant's spouse, if there is one and if the spouse is competent to do so;  or by the attorney-in-fact pursuant to the applicant's Durable Power of Attorney, if the Durable Power of Attorney authorizes the agent to do so. If none of the above conditions exist, a court proceeding would be necessary to secure the authority to create a Qualified Income Trust.

The Qualified Income Trust must be properly managed and payments must be made each month to maintain eligibility.  There are very specific rules that must be followed for the trust.  Contact us for assistance and more detailed information.

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