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Miller Trusts And Medicaid Eligibility
Iowa has an income cap for Medicaid, which means your income must be below a certain amount for you to be eligible. If your income is keeping you from receiving Medicaid, one way to qualify is to establish a Miller Trust to hold your income for you.
At Janssen Law, PLC, we have extensive experience establishing many kinds of trusts. Our attorneys also understand how frustrating Medicaid issues can be. We are on your side, helping you navigate both your estate planning and Medicaid concerns and options. We will take the time to evaluate your situation to protect your best interests.
How Does A Miller Trust Work?
A Miller Trust places your income in a trust of which you are the beneficiary. The trust provides you with small monthly allowances from your income, so you can qualify for Medicaid.
The steps to creating a Miller Trust involve:
- Establishing the trust: Trusts transfer ownership of assets. So, you do not technically own your income until you receive it from the trust. This is what allows you to qualify for Medicaid under the income cap.
- Assigning a bank account: You must assign a bank account for the trust to operate through. The account will be how you receive the allowances of your income.
- Directing your income: Once the trust and bank account are established, you direct your income into the trust. Depending on your situation, you can assign a portion or all of your income into the trust. For example, you could direct your Social Security income to the trust, but keep receiving direct payments from your pension.
It is important to note that you can use a Miller Trust only for Medicaid expenses.
Get A Knowledgeable Attorney On Your Side
Miller Trusts can be complicated. It can be overwhelming to make sure you follow Medicaid rules while still protecting your finances. Our experienced estate planning lawyers can guide you through every step. We want you to understand what is happening.