If you count on Medicaid to help you with respect to long-term care services, it is crucial to understand that you could lose your eligibility if your income exceeds a certain limit. If you find yourself in this position currently, or you have concerns about losing Medicaid eligibility due to your income at some point in the future, it is critical to closely examine your options.
Some people set up a Miller trust in order to safeguard Medicaid benefits that they depend on. If you want to protect your Medicaid eligibility through a Miller trust, it is crucial to understand how these trusts help people.
An overview of Miller trusts
The Division of Services for Aging and Adults with Physical Disabilities provides helpful information on how Miller trusts work. In Delaware, people become disqualified from Medicaid reimbursement when their income reaches a certain point. However, some people can set up a Miller trust in order to secure Medicaid benefits for nursing home care and other long-term care services.
Creating a Miller trust
According to the DSAAPD, when you set up a Miller trust, your income goes to the trust and covers care costs, and this income does not impact Medicaid eligibility. Following the death of someone with a Miller trust, funds left in their trust reimburse Medicaid for care that they received.
If you are considering this strategy, it is crucial to realize that there are unique rules with regard to setting up and using a Miller trust, so make sure you evaluate your options and the details of the process closely.