Miller Trust

What is a Miller Trust?

One of the most frustrating aspects of practicing elder law relates to the Income Cap the State of New Jersey imposes on Medicaid Home Care Benefits. Currently, if a person’s monthly income (including income tax withholding and Medicare Part B or D premiums) exceeds $2,199.00 that person cannot be eligible for Medicaid Home Care Benefits or Medicaid Assisted Living Benefits.

In December the State of New Jersey solved the income cap problem by requiring Medicaid applicant’s whose income exceeds the $2,199.00 to establish a Miller Trust (now called a “Qualified Income Trust”).

How does a Miller Trust work?

A person establishes a Miller Trust through an Elder Law Attorney. Under the terms of the Miller Trust, every month a person deposits their income in excess of the income cap into the Miller Trust bank account. The Trustee then pays those funds to the entity providing care for the person.

If the Miller Trust is properly drafted and managed, then, practically, the person who in the past could not get home care benefits through Medicaid will be eligible for home care benefits.

The Grodberg Law Firm, LLC is experienced in drafting Miller Trusts, advising individuals who desire to establish a Miller Trust and advising Trustees on the proper functioning of the trust.