Miller Trusts / Qualified Income Trusts

Understanding Miller Trusts and Qualified Income Trusts Can Be Tricky, But Necessary…

Too many people drain their savings on long-term care because they did not plan ahead. Many assume Medicare or Medicaid will cover these costs.

Medicaid can help pay for care, but you must plan in advance. You need to apply and receive approval before coverage begins. Many people also exceed the income limits and assume they won’t qualify. What they don’t realize is that legal strategies can help them qualify and get approved.

This is just one area that is typically covered in Estate and Asset Protection planning.

It’s heartbreaking to me when I see people come to me after their assets have been drained and they literally have nothing left.

A Miller Trust, also known as a Medicaid Qualified Income Trust (QIT) is one of the most common strategies utilized when an applicant is over the qualifying income limit to be deemed eligible for Medicaid.

Here’s how a Miller Trust works in Georgia.

In Georgia, the Medicaid income limit for 2023 is $2,742 per month. Medicaid bases eligibility on gross income, not the net amount deposited.

If an applicant’s gross income exceeds the monthly limit, they must take additional steps. The limit changes each year and is typically around $2,700 per month. In these cases, applicants usually need to set up a Miller Trust.

A Miller Trust helps manage income that exceeds Medicaid limits. Each month, the excess income should be transferred into the trust. The funds are then used within the same month. They typically cover the applicant’s required cost of care or other medical expenses.

If the applicant’s income falls below the limit, a Miller Trust is not required.

The Miller Trust is a document that describes the rules of the trust and names a trustee.

The Georgia Department of Community Health has a preferred format for the trust document. Once the trust document is signed by the Medicaid applicant, their agent under a power of attorney, or their conservator, then the trustee can take the document to a bank and open a checking account. Each month the Medicaid applicant will transfer their income from their personal checking account to the QIT checking account. Then the trustee will pay the approved medical expenses out of the trust. The Miller Trust checking account will not retain any money.

If you or a loved one falls into this category, call The Estate & Asset Protection Law Firm immediately at 404-370-0696 and let us establish the Miller Trust for you or your loved one. Medicaid will not be approved until the trust is set up.

Looking to find an experienced estate lawyer in the Georgia area who is skilled in asset protection and estate plan preparation? Shannon Pawley is an attorney in Georgia with expertise in estate planning and asset protection. Shannon can provide assistance with creating an estate plan to include making a will and how to establish a trust properly. If you have questions about asset protection or questions about making an estate plan, reach out to Shannon and she will be glad to help answer all the estate planning questions you might have!