When it comes to qualifying for Medicaid, there is a lot of hoops. Depending on your income and assets, or the income and assets of your loved one, it may seem like you already have too much.
Colorado offers a plan to help curb this in the form of the Miller trust — a way to spend excess income in order to qualify. That way you might access necessary financial help for long-term care or a nursing home.
Miller trust basics
Miller trusts, or qualified income trusts, are irrevocable. That means that no one may alter its details without abiding by any stipulations the trust details. According to the American Council on Aging, the Medicaid recipient’s income goes towards the trust.
These funds may go to specific purposes like a personal needs allowance but otherwise, go to exempt excess income so that a recipient may still receive Medicaid.
Upon death, the state is the beneficiary of the Miller trust. If there are funds remaining, the state receives them as reimbursement for any care provided. In the case of overflow, the state does not receive the rest, and the trust may have details as to who benefits from it.
Miller trust restrictions
This trust only applies to income. If an applicant’s assets breach the Medicaid limit, there are other tools to help with that. Spend-down strategies to pay down bills or home renovations like access ramps may assist with the asset side of things.
Some states have a set limit on how much income a recipient may deposit into a Miller trust.
This irrevocable trust is a tool for you to plan for your later years or the long-term care of a loved one. While it may seem complicated, there are further resources to utilize when deciding if a Miller trust is right for your situation.