Paying for care
Income cap trust (Miller trust)
An income cap trust, also called a Miller trust or income-only trust, holds part of a person's monthly income so the person can meet a state's Medicaid income limit for long-term care. Only income goes into it, not assets. After death, the state is usually repaid first. Not every state recognizes these trusts.
Why it matters for your family
These trusts matter in states with an income cap. A person whose income is slightly over the limit can place the extra income in the trust. The trust then pays for allowed costs, such as the cost of care. States that cover the medically needy often do not use them, because spend down serves the same purpose. A common mistake is to set up the trust without checking state rules. Errors can delay or block eligibility. Michigan, for example, does not recognize Miller trusts, according to the Administration for Community Living. Use an elder law attorney licensed in the state.
Source: acl.gov
Read more: What is Elder Law and Do You Need an Elder Care Attorney?
Related terms
- Spend downSpend down is a way to qualify for Medicaid when your income is above the state limit.
- Medicaid eligibilityMedicaid eligibility for long-term care depends on need, income, and assets.
- Medicaid planningMedicaid planning is the legal arrangement of income and assets so a person can meet Medicaid rules for long-term care.
- Medicaid estate recoveryMedicaid estate recovery is the process where a state seeks repayment from a deceased Medicaid member's estate.
- Elder law attorneyAn elder law attorney is a lawyer who focuses on legal issues of older adults.
- Special needs trustA special needs trust, also called a supplemental needs trust, holds money for a person with a disability.
