Qualified Income (Miller) Trusts

Setting Up a Qualified Income Trust or Miller Trust

Wright Abshire, Attorneys
Houston, Texas
(713) 660-9595 ∙ (800) 280-4759
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To qualify for Medicaid nursing home benefits, one of the requirements is that the applicant's monthly income from all sources must not exceed a certain amount ($1,911 in 2008).

Miller Trusts: A Way to Solve the Problem of Excessive Income

If you have — or will have — more than $1,911 in monthly income, you may believe that you will not qualify for Medicaid nursing home benefits. That may not be the case at all. A "Miller trust" — also known as a qualified income trust —in most cases solves the problem of an excessive monthly income.

Wright Abshire, Attorneys: Experienced Medicaid Eligibility Lawyers

Since 1982, the elder law firm of Wright Abshire, Attorneys, has guided its clients to resolution of all legal matters touching the lives of elderly people — including estate planning and other financial matters. Our lawyers have been handling Medicaid eligibility issues for clients since long before the Miller trust was even established, and we have been using Miller trusts as a helpful estate planning instrument since it became available in the early 1990s. Contact our office to schedule a consultation regarding Medicaid eligibility and income levels.

What Is a Miller Trust?

A Miller trust, also known as a qualified income trust, is an asset protection device that shelters your income from the Medicaid eligibility requirements.

A Miller trust was established first by our court system, and later by Congress. It is a legal method by which an individual can pass the monthly eligibility test for Medicaid even though his or her monthly income exceeds the Medicaid cap.

How Does a Miller Trust Work?

Take as an example an individual who receives $2,300 in income — $1,500 from a private pension and $800 from Social Security. The Medicaid income cap is currently $1,911, so this individual's income exceeds the cap by $389.

By law, the monthly income of $2,300 can be placed in a Miller trust and bills are paid out from the trust fund each month as allowed by the Texas Health and Human Services Commission (HHSC). Typically, the HHSC will allow a small personal needs allowance for the applicant and the spouse, as well as payment of some insurance premiums. Then the balance would be paid in applied income to the nursing home.

Contact Wright Abshire, Attorneys, for a Consultation

Before you make any decisions regarding payout of your hard-earned retirement funds — or if a family member has been denied Medicaid eligibility due to income levels — contact our office for a consultation. We may be able to restructure your estate plan to preserve your assets for future generations while still allowing you to achieve Medicaid eligibility.

To schedule a confidential appointment, send us an e-mail or call us toll-free at (800) 280-4759.

From our wheelchair-accessible offices in Bellaire, Texas (a city within Houston), we represent clients throughout the Houston area as well as statewide. We also represent clients from other states with elderly family members in Texas. Our attorneys can make home, hospital or nursing home visits outside of the Houston area when necessary. And in some cases, many of our legal services can be provided over the telephone for our clients' convenience.