Don’t worry, this is a myth that is often repeated to seniors wishing to apply. Many states have tools such as a Qualified Income Trust also known as a “Miller Trust”.
Miller Trusts, also called Qualified Income Trusts, provide a way for Nursing Home Medicaid and Medicaid Waiver applicants who have income over Medicaid’s limit to become income-eligible for Medicaid long-term care. In short, income over Medicaid’s limit is put into a trust and is no longer as counted as income, thus allowing the applicant to become eligible.
Miller Trusts are called by a variety of names and include the following: Qualifying Income Trusts, QITs, Income Diversion Trusts, Income Cap Trusts, Irrevocable Income Trusts, Income Trusts, d4B trusts, and Income Only Trusts. These names are often state specific. Arizona calls this type of trust an Income-Only Trust, Oregon calls it an Income Cap Trust, and New Mexico calls it an Income Diversion Trust. Regardless of the name used, the terminology refers to the same type of trust: Qualified Income Trusts. For the purposes of this article, we will use the above terminology interchangeably.
What do clients do who live in a state that does not recognize a Miller Trust? Will they still qualify? The short answer is YES. Many clients look to a Certified Medicaid Planner to assist in proving to Medicaid that the cost of care for the client exceeds the amount of income they have coming in. This is sometimes called a “Medically Needy Pathway”.
