When is a Qualified Income Trust (Miller Trust) required?

A Qualified Income Trust (often referred to as a Miller Trust) is particularly relevant when a person's income exceeds a certain threshold, specifically when that person's monthly income is three times the amount of the current Supplemental Security Income (SSI) payment. The purpose of the trust is to enable individuals who would otherwise be ineligible for Medicaid due to high income levels to qualify for assistance with long-term care costs.

The trust allows the individual to place excess income into the trust, thus lowering their countable income and allowing them to meet the Medicaid eligibility criteria. This mechanism is crucial for those who need long-term care services because Medicaid has strict income limits. By utilizing a Miller Trust, individuals can safeguard their eligibility for benefits while also planning for their long-term care needs.

When establishing the trust, it is important to ensure that all funds placed into the qualified income trust do not exceed the allowable income limit for Medicaid purposes. Hence, the context of Medicaid eligibility is central to understanding the necessity for such a trust when income levels are significantly higher than those permitted by SSI standards.