Helping You Maintain Medicaid Eligibility With A Miller Trust

Did you recently have to put an aging parent into a nursing home? Does a loved one make too much money to qualify for Medicaid benefits? Are you concerned about paying for your long-term health care needs if you are unable to collect Medicaid payments? The lawyers at the Law Offices of Bonnie M. Benson, P.A., in Delaware, can help you.

We Will Help You Determine If A Miller Trust Is Right For You

Our law firm has been providing effective and affordable elder law and estate planning services to clients throughout Sussex County and Kent County since 1983. We understand the difficulties you face when you or a member of your family needs long-term care.

If you make more income than the highest amount allowed by Medicaid eligibility requirements, we will help you establish a plan to provide long-term care without jeopardizing your eligibility for Medicaid benefits. An irrevocable qualified income trust – referred to as a “Miller trust” – takes any income that exceeds the eligibility cap out of the hands of the Medicaid applicant and diverts it to purposes compliant with Medicaid rules. Although setting up this estate planning tool is complicated, we have decades of experience helping clients use Miller trusts effectively.

How A Miller Trust Works In Delaware

Delaware sets an income cap to determine an applicant’s eligibility for long‑term‑care Medicaid, which covers nursing home and DSHP‑Plus home‑and‑community‑based services. If an applicant’s gross monthly income is above the cap, he or she is ineligible. There is no option to “spend down” excess income.

However, a Miller trust lets Delaware residents qualify for long‑term‑care Medicaid when their monthly income exceeds the cap. Here’s how it works in practice:

• All or part of your gross monthly income, including Social Security, pension or other payments, is deposited into a special bank account.
• Your appointed trustee (often a family member) makes payouts from the account according to Medicaid rules.
• You receive a personal needs allowance (about $75 per month).
• Your spouse who remains at home receives a community spouse allowance if their income is below the minimum monthly maintenance needs allowance (MMMNA).
• The remaining funds go to the nursing facility or managed‑care plan as the patient‑pay amount.
• At your passing, any funds left in the trust go to reimburse Delaware Medicaid for care costs.

A Miller trust is irrevocable, which means that any funds deposited in the trust cannot be withdrawn or applied to other uses. Also, the trust can hold income only, not savings or property. Your assets still must remain under Medicaid’s resource limit, which is $2,000. A community spouse may keep a much larger amount called the Community Spouse Resource Allowance (CSRA).

A Miller trust is a straightforward, widely accepted tool, but it must be drafted and funded each month correctly. A skilled estate planning attorney can ensure the trust meets Delaware’s requirements and fits smoothly into your Medicaid planning.

Frequently Asked Questions

We’re pleased to answer any inquiries about using a Miller trust to establish Medicaid eligibility. The following are common ones we’ve received.

What is the current monthly income limit for Delaware Medicaid and how does a Miller trust help?

Delaware’s income cap for long‑term‑care Medicaid is about 250% of the Supplemental Security Income (SSI)/Federal Benefit Rate or about $2,485 per month in 2026. An applicant’s gross income must be less than the cap. If not, Medicaid will deny eligibility unless the applicant creates a Miller trust, into which their income is diverted. When considering the applicant’s eligibility, Delaware Medicaid disregards the funds in the trust so that the applicant can be approved for long‑term‑care coverage.

What happens to the money in a Miller trust in Delaware after the Medicaid recipient passes away?

Any funds remaining in a Miller trust when the recipient passes away must be used to reimburse Delaware Medicaid for the cost of care that the program paid. This is called the Medicaid “payback” requirement. If the trust balance is more than the total Medicaid expenditures, the claim is capped at the amount paid. Only after Medicaid is fully reimbursed can any remaining funds pass to heirs, though in most cases the trust is nearly depleted because income is paid out monthly for the recipient’s care.

How does your flat‑rate fee structure work for setting up a Miller trust in Sussex or Kent counties?

We charge a flat‑rate fee for Miller trusts so that families in Sussex County or Kent County know exactly what the cost will be upfront. The fee covers the full process: drafting a Delaware‑compliant trust, guiding you through opening the required bank account, helping you correctly route income into the trust and giving clear instructions for monthly administration so eligibility stays protected. The fee covers attorney support until the trust is implemented for your Medicaid application.

Providing Understandable, Accurate And Cost-Effective Legal Services To Delaware Elders

At the Law Offices of Bonnie M. Benson, P.A., our experienced estate planning and Miller trust attorneys are committed to helping you find the best long-term solutions for yourself and your family. We charge a flat rate for most of the legal services we provide so you don’t have to worry about hidden costs or expensive surprises.

Call us at 302-549-0160 to schedule a consultation. You may also send us your questions by email.