A Miller Trust is a type of income trust that can be used to help an individual who exceeds the income limit to qualify for Medicaid in his state of residence. This type of trust is specifically used for long-term care assistance, such as placement in a skilled nursing facility.Continue Reading
The main focus of the Miller Trust is to name a recipient to receive the applicant's income from a source, such as Social Security or a pension. The income is then placed in the Miller Trust and is not counted when determining the applicant's Medicaid eligibility. Any assets belonging to the applicant are not included in the Miller Trust, as it is specifically for income. However, not all states are required to allow Miller Trusts.
Income deposited in a Miller Trust can be used for a few different purposes. It can be provided directly to the individual as a small allowance each month, or it can be provided as an allowance to the individual's spouse. It can also be used to cover Medicare premiums and other out of pocket costs associated with medical care. However, funds in a Miller Trust are often used to cover out-of-pocket costs associated with long-term care in a skilled facility.Learn more about Financial Planning