Qualified Income (“Miller”) Trusts are designed to allow people to qualify for Medicaid even though they may be earning more than is allowed under the Medicaid eligibility rules.

Generally, people think they must have limited resources and limited income to qualify for Medicaid. Even if the resources test is met, to qualify for Medicaid one’s income cannot exceed a specified monthly amount which changes annually. Qualified Income Trusts are for people who meet the limited resource test, but who make too much money.

The trust functions by limiting the amount of the trust that can be distributed. This way, a person who makes too much money each month can artificially lower his or her income to satisfy the Medicaid income test. Except for a personal needed allowance and funds which can be distributed to a spouse by the trust, the remainder of the client’s income will be used to pay for the nursing home care. Medicaid will then pay the balance of the cost of the nursing home.