A trustor is the person who creates a trust. A trustor is also called a grantor, donor or settlor. A trust is a separate legal entity that holds property or assets of some kind for the benefit of a specific person, group of people or organization known as the beneficiary/beneficiaries. When a trust is established, an individual or corporate entity is named to oversee or manage the assets in the trust. This individual or entity is called a trustee. A trustee can be a professional with financial knowledge, a relative or loyal friend or a corporation. More than one trustee can be named by the trustor.
The qualified Medicaid income trust is a legal instrument which meets criteria in 42 United States Code 1396(p) and which allows individuals with income over the institutional care program limits to qualify for institutional care services or for home and community based services assistance.
A Medicaid trust may take various forms and laws vary by state. There are differing requirements under state laws regarding what assets may be counted or reached for recovery upon death. To comply with applicable requirements, professional financial advice should be sought. The term "Miller Trust" is an informal name. A more accurate name for this trust is an "Income Cap Trust". It has also been called an Income Assignment Trust. This is because, after the trust is created, the patient assigns his or her right to receive social security and pension to the trust.
Massachusetts Qualified Income Miller Trust, also known as a Qualified Income Trust (QIT), is a legal mechanism designed to allow individuals with excess income to qualify for Medicaid in Massachusetts, while still having their long-term care costs covered. It is specifically aimed at individuals who have income that exceeds the Medicaid eligibility threshold. In Massachusetts, there are two different types of Qualified Income Miller Trusts: 1. Income-Only Trust: This type of QIT is designed for individuals who only have excess income that exceeds the Medicaid income limits. The individual deposits their excess income into the trust each month, and that income is then used to pay for their medical and long-term care expenses, as well as their monthly patient responsibility towards their care costs. By doing so, the individual's income is effectively "spent down" to the Medicaid eligibility threshold, allowing them to qualify for Medicaid coverage. 2. Pooled Trust: A Pooled Trust is another form of Qualified Income Miller Trust available in Massachusetts. It is designed for individuals who have both excess income and excess resources (assets) that exceed the Medicaid limits. In this type of trust, the individual's excess income and resources are combined with those of other participants in a nonprofit organization's master trust. The trust then manages, invests, and distributes the pooled funds on behalf of each participant, paying for their medical and long-term care expenses while ensuring Medicaid eligibility. The Massachusetts Qualified Income Miller Trust is subject to certain rules and regulations, including the requirement that it be irrevocable, meaning the individual cannot change or revoke the trust once it has been established. Additionally, there are limits on who can establish and manage the trust, typically requiring the involvement of an attorney or a qualified trustee. This trust type plays a crucial role in helping individuals in Massachusetts overcome the income restrictions of Medicaid, enabling them to receive the necessary long-term care coverage while preserving their financial security. By utilizing a Qualified Income Miller Trust, individuals can access critical healthcare services without depleting their entire income or assets.
