The Income Only Trust is often referred to as a Miller Trust or an Income Cap Trust.
The Income Only Trust (Miller Trust or Income Cap Trust) is a Medicaid Planning tool designed specifically for the client who would otherwise be ineligible for Medicaid due to income exceeding state guidelines.
It is our understanding that the first such trust was written in Colorado for the Miller family, hence the nickname “Miller Trust”.
A Miller Trust makes Social Security and other income exempt from calculations of income if the state is reimbursed from the trust for Medicaid expenses. In this situation, the applicant assigns all of their non-exempt income to an irrevocable trust. The trust pays out the maximum allowable amount of income to the applicant, without losing their eligibility. This income is paid directly to the Medicaid recipient’s nursing home.
The Miller Trust has a special bank account which keeps the excess money, which will be paid to the state of Arizona upon the death of the person whose income the trust took. … This allows people that are a few dollars over the income limit to qualify for the benefits they need.
The team at Legal Awareness for Arizona has used this trust countless times to ensure the eligibility of many of our clients. If you or a loved one has income exceeding the state guidelines, please call us for a free consultation.
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