A Miller Trust, also called Qualified Income Trusts, is an Irrevocable Trust that provides a way for Medicaid applicants who have income over Medicaid’s limit to become eligible for Medicaid long term care. In short, income over Medicaid’s limit, is put into a trust and therefore not counted as income, thus allowing the applicant to become eligible.
A Medicaid applicant allocates their monthly income which is in excess of the Medicaid income limit into a Qualified Income Trust and the applicant is permitted to qualify for Medicaid.
The person setting up the Income Diversion Trust (the grantor, also called a settlor) can be the Medicaid applicant, his/her guardian or power of attorney. A trustee, who manages the trust and follows the guidelines set forth by the trust, must be named. This person must be someone other than the Medicaid applicant, but can be a relative, such as an adult child. The state in which the Medicaid recipient will be receiving long-term care benefits must be named as the beneficiary, and upon the death of the individual, the state will receive any funds left in the Miller Trust for which it paid for that individual’s long-term care. The trust must be irrevocable, which means the trust cannot be altered or canceled.