What is an "Income Only Trust," a.k.a Miller Trust, and how does it work?
What is an Income only Trust?"
Think of the income only trust as a "Funnel with spouts on its side as well as the bottom.
The person applies for ALTCS income is assigned or poured into the Trust.
Income that is transferred to the Trust can only be used for the applicant's allowable expenses. These expenses include:
The Monthly Personal Needs Allowance. This is the monthly allowance for the ALTCS applicant for personal needs, like hair cuts and church contributions.
Any Medicare and dental insurance premiums
Medical expenses that are not covered by ALTCS or Medicare.
If married, additional income might be allowed for the well spouse. This is called the Community Spouse Resource Allowance. This can help pay their living expenses.
Then the balance of the income flows out of the bottom of the funnel and is used to the share of cost for the care home or community.
And wall-la- Income is no longer a bar from being approved.
So how do you get an Income Trust prepared?
Call us at 480-967-8477.