Miller Trusts

The label “Miller Trust” is oftentimes used for what is more formally known as a “Qualified Income Trust” or “QIT.”  We have noted numerous clients who believe that the only thing necessary to become eligible for Medicaid is to create a QIT.  In many cases, this is not true.  In reality, there are numerous reasons why eligibility may not be met and QIT’s can only remedy one of them, that being the issue of too much in monthly income.  Currently under Texas law, an applicant for Medicaid for the elderly and disabled can receive no more than $2205.00/month in gross income.  If monthly gross income exceeds this amount, a QIT is utilized.  QIT’s are quite different than most trust instruments.  For example, it is an irrevocable trust, yet it is identified not by a TIN (trust identification number) but by the grantor’s social security number.  Another feature that distinguishes it from most trusts is that much of the time there may be little to no assets in the trust.  QITs operate more like a conduit in which income is deposited, but then almost immediately paid out in specific fashion for allowable expenses.  In addition, they are distinct from most trusts in that the primary beneficiary must be the State of Texas to the extent any Medicaid benefits were paid on behalf of the beneficiary.  The criteria for establishing and paying out of a QIT are stringent so it is always best to see an elder law attorney to help you toward this end.

This article is written by an attorney at Wyatt & Mirabella, PC. Always consult an attorney before making any legal decisions. To make an appointment today for a free consultation, please click here to contact us.