Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading…
Transcript

Miller Trust Fund

by Megan

What Is It?

  • Irrevocable trust established in order to recieve medicaid benefits when the applicant makes more than the state mandated income limit.

  • Trust is then used to pay for the persons care

  • Also known as (depending on the state)
  • Qualified income trust (QIT)
  • D4B Trust
  • Miller Trust

  • Only used in Income Capped States

About

Why is it needed?

  • Applicant exceeds income limit for medicaid

  • Applicant needs long-term care

  • Applicant has a spouse that still needs spousal support

Miller v. Ibarra, 746 F. Supp. 19 (D. Colo. 1990)

  • 4 women who were living in nursing homes and were total care were denied medicaid due to their incomes exceeding the limit.
  • Lottie Bernice Ham
  • Marie Louise Turtness
  • Mary D Cummings
  • Maria S Tusei
  • All 4 women made trusts that were authorized by their district county states and were still denied benefits by the state of CO.
  • The case was filed to determine:
  • Were the denials actionable
  • Should their trust incomes be considered "available"
  • Do the creation of the trusts constitute disposing of resources
  • Were the trusts "medicaid qualifying trusts"

History of Miller Trust

Obra '93

Obra '93

  • Codified Miller vs Ibarra with 2 rules:
  • 1. The trust must consist solely of pension, Social Security, and other income, plus the accumulated income on those trust amounts; and
  • 2. The trust must provide that any sums remaining at the death of the beneficiary will first be used to repay the state for Medicaid expenditures.
  • [42 U.S.C. § 1396p(d)(4)(B)]

Eligibility Requirements

Eligibility

  • Must meet basic eligibility for the specific states medicaid program

  • Exceed minimum income limit

  • Have a trustee for trust fund

  • Have a checking account

How to set up trust

  • Meet with elder law attorney or medicaid planning attorney
  • attorney will draft trust for applicant
  • Must be signed by applicant
  • MDPOA, guardian, or proxy if applicant cannot sign

  • Take document to the bank and ask them to open trust

  • Trust will need a trustee assigned who manages account
  • cannot be the applicant

How to set up trust fund

How to use trust

  • Open checking account for trust and keep another checking account open
  • If married with joint accounts, take applicant name off every other account but the trust account
  • Make monthly deposits from checking account to the trust account
  • deposit all income except what is needed for spouse, if not single
  • Medicaid approves what trustee can pay for from the trust
  • Can cover approved medicaid expenses such as medicare premiums and other needs
  • Remaining goes to nursing home

How to use the trust

Drawbacks to trust

  • Has to be provision in document stating that after applicant passes:
  • money remaining in account will go towards paying medicaid back for any portion they covered for applicant care

Below Income Gap

Bank

Income

Care

Allowances

Nursing

Home

Medical

Bills

Spousal Income

Diagrams

Above Income Gap

Bank

Income

Care

Allowances

Nursing

Home

Medical

Bills

Spousal Income

  • by Braverman Law Group. (2021, July 16). Using a Qualified Income Trust in Colorado to Reduce Income and Retain Medicaid Eligibility for Long-Term Elder Care — Boulder Estate Planning Legal Blog — July 16, 2021. Boulder Estate Planning Legal Blog. https://www.braverman-law.com/blog/using-a-qualified-income-trust-in-colorado-to-reduce-income-and-retain-medicaid-eligibility-for-long-term-elder-care/#:~:text=After%20a%20Miller%20trust%20is%20established%20in%20Colorado%2C,share%20of%20their%20care%20and%20certain%20specific%20allowances

  • David McGuffey. (2012, June 22). Miller Trusts - What They Are and How They Work [Video]. YouTube. https://www.youtube.com/watch?v=oduf830_9Js

  • Elder Needs Law, PLLC. (2016, November 22). What is a Miller Trust? [Video]. YouTube. https://www.youtube.com/watch?v=XTl2OkCUasc

  • Erieau, B. (2019, February 19). What is a Miller Trust. Krause Financial Services. https://www.medicaidannuity.com/miller-trust/

  • Miller v. Ibarra, 746 F. Supp. 19 (D. Colo. 1990). (n.d.). Justia Law. https://law.justia.com/cases/federal/district-courts/FSupp/746/19/1756624/

  • Vouga Elder Law. (2018, March 9). THE BIG MEDICAID SECRET NURSING HOMES WON’T TELL YOU [Video]. YouTube. https://www.youtube.com/watch?v=O0VOq4Zqg9Q

  • Vouga Elder Law. (2019, January 31). Don’t Go Broke in a Nursing Home [Video]. YouTube. https://www.youtube.com/watch?v=A3QhrVUO9j8

Resources

Learn more about creating dynamic, engaging presentations with Prezi