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.
Maryland Qualified Income Miller Trust is a specific type of trust established in the state of Maryland. It serves as a legal tool to enable individuals with high income levels to qualify for long-term care benefits through Medicaid, an assistance program for low-income individuals. Also known as a QUIT or a Miller Trust, this specialized trust is designed for individuals who exceed the income limits set by Medicaid, but still require long-term care services. By establishing a Qualified Income Miller Trust, individuals can effectively "redirect" their excess income on a monthly basis into the trust, thus reducing their countable income to meet Medicaid eligibility criteria. There are generally two types of Maryland Qualified Income Miller Trusts, namely the Income-Only Trust and the Pooled Trust. Let's delve into them further: 1. Income-Only Trust: An Income-Only Trust is established solely for the purpose of sheltering excess income and making it eligible for Medicaid benefits while ensuring the individual covered by the trust has access to necessary living expenses. With this type of trust, only income, not assets or resources, can be redirected. The funds in the trust are used to pay for the individual's medical expenses, care services, personal needs, and any remaining income goes to Medicaid as a form of reimbursement. 2. Pooled Trust: A Pooled Trust is another type of Qualified Income Miller Trust where individuals with excess income can pool their funds together with other beneficiaries, managed by a nonprofit organization. With a Pooled Trust, each beneficiary has a separate account within the trust, but the financial management and investment are done collectively. The funds in the trust can be used for various purposes, such as medical expenses, housing costs, legal fees, and supplemental needs of the beneficiaries. In both types of Maryland Qualified Income Miller Trusts, it is crucial to abide by specific rules and regulations set by Medicaid to ensure compliance. The trust must be irrevocable, and certain restrictions on the use of funds may apply. Seeking the guidance of an experienced elder law attorney or professional can help establish and manage the trust effectively, ensuring Medicaid eligibility while meeting the needs of the individual receiving care. In summary, a Maryland Qualified Income Miller Trust is an essential tool for individuals in Maryland to help them qualify for Medicaid benefits despite having excessive income levels. Understanding the different types of trusts available, such as the Income-Only Trust and Pooled Trust, is essential to determine the most suitable option based on the individual's circumstances.
