Miller Trusts, also known as QITs (Qualified Income Trusts), provide an important and much-needed solution for people who want to apply for Medicaid, but can’t get approved because they earn too much income. A Miller Trust may allow those individuals to get the care that they need without worrying about income issues.
In New Jersey, without a Miller trust, the maximum amount of income that one can have while still qualifying for Medicaid is $2,199 per month as of 2015. If a person gets more than the maximum income level, they cannot qualify for long term care through the federally sponsored Medicaid program without the proper use of a trust.
While the simple act of establishing a trust in order to become eligible for Medicaid is relatively straightforward for an experienced lawyer, special conditions need to be met in order for the trust to be successfully established. QITs must be irrevocable, and the State of New Jersey must be the primary beneficiary of the trust’s funds up to the amount paid for Medicaid benefits upon the death of the recipient.
As of Dec. 1, 2014, the laws for Medicaid qualification changed in New Jersey. One of the most popular programs, the Medically Needy program, has been disbanded. Unlike Medicaid Only, the Medically Needy program did not have a maximum income qualification. In order to establish a smoother transition from a dual program offering to a single program offering, the amended law means that people who began to receive care under the Medically Needy program will not need to establish a Miller Trust. New applicants will have to use a Miller Trust.
The experienced attorneys at Bratton Law will explain the laws as they apply to you and work tirelessly to protect your assets while planning for all your care needs. Contact our office today for a consultation about your personal financial situation.