What Are the Uses for a Miller Trust?

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A Miller Trust is an unique kind of trust that adjusts an individual’s income downward, generally in an attempt for the specific to keep eligibility for certain kinds of governmental benefit programs. The majority of frequently, these trusts are used for the purpose of developing eligibility for the Medicaid program.

Medicaid Program Eligibility Criteria

In order to receive Medicaid, the individual’s earnings must be under a specific earnings level. Medicaid is administered at the state level, so the state develops the income level that the candidate can not exceed. How eligibility is identified depends on whether the state is thought about a spend-down state or an earnings cap state.

Spend-Down States

Most states are spend-down states in which a candidate’s income should be spent down on medical costs prior to the candidate can become eligible for Medicaid. These states do not utilize Miller trusts because candidates get approved for Medicaid when their health care costs lower their earnings below the income requirement used in the state.

Income Cap States

In income cap states, Medicaid candidates who have earnings that is over the earnings eligibility guideline can not certify for Medicaid unless they put excess income in a Miller trust. The state establishes the income cap. The optimal income is generally 300 percent of the month-to-month SSI amount.

Miller Trusts

The Miller trust pays the Medicaid recipient a small month-to-month allowance. By redirecting earnings to the Miller trust, the candidate can become eligible for the program. Redirecting income involves putting it into an account that is entitled in the name of the trust, for example. The earnings that becomes part of this special type of trust is not counted when identifying whether the candidate is qualified for Medicaid so that the applicant has the opportunity to be eligible for this program.

Partner’s Income

The Miller trust can also pay the recipient’s partner a small month-to-month allowance. Nevertheless, any income over the amount needed for the recipient and his or her spouse’s allowance is then utilized to pay the recipient’s share of his/her expense of care.

Mechanics of a Miller Trust

Miller trusts are mostly used to assist applicants end up being eligible for Medicaid benefits. Much of the funds that are originally transferred into a Miller trust account are often utilized to pay for the cost of the applicant’s care. If a Medicaid applicant receives income of $2,500 however the earnings cap is $2,205, the candidate would not qualify for benefits due to the fact that her income is $295 more than the state earnings eligibility guideline. If a Miller trust is developed, the additional $295 could be transferred into a different account for the Miller trust even though many of the $2,500 will be utilized to pay the candidate’s share of her expense of care. Normally, the candidate’s whole government advantage check is deposited into an account that is listed under the name of the trust. By depositing the funds in this way, it avoids the candidate from having direct access to the earnings so that the funds can be divided between the website supplying care for the applicant and the applicant’s regular monthly allowance.


Miller trusts can be used to pay for a small monthly allowance, Medicare premiums and medical expenses that are not covered by Medicaid or Medicare. In any occasion, the Miller trust can only be used to pay for the applicant’s permitted expenses.

Establishing a Miller Trust

Unlike other kinds of trusts, there are restricted restrictions on who can develop this type of trust to get approved for government advantages. Any candidate of any age who would otherwise be qualified for the Medicaid program can establish a trust of this nature. Typically, an individual utilizes the services of an estate planning lawyer to create a trust of this nature. In the trust file, a trustee is called to administer the trust for the advantage of the applicant.