Miller Trusts and ALTCS Special Needs Trusts
Some seniors have income from Social Security and a pension that is in excess of the income limit for ALTCS. However, the amount of money that is needed for senior housing is sometimes higher when paying privately than it is when on the program. For seniors in this situation, a Miller Trust, also called a Qualified Income Trust, or an Income Only Trust is sometimes a good option. Miller Trusts do not deal with assets, but are a way to lower one’s income so that you can qualify for state benefits. The Miller Trust has a special bank account which keeps the excess money, which will be paid to the state of Arizona upon the death of the person whose income the trust took. This allows people that are a few dollars over the income limit to qualify for the benefits they need. Again, a Miller Trust only deals with income, not assets such as a house or a car.
Income Only Trust
Income only trusts are the same as miller trusts. These trusts help reduce the amount of monthly income to allow the applicant to qualify. The first step is to establish an income only trust/miller trust. To establish the trust, the trust document must be created. This can be done by a qualified attorney or document preparation firm. This trust will later be used to open up an income only trust bank account. The trust allows individuals over the income allowed threshold to qualify for state benefits because of the language in the trust; it complies with AHCCCS and ALTCS language.
Special Needs Trusts
Sometime, people who are not of sound mind and judgment, or who are otherwise unable to manage their own financial affairs for reason of disability, may benefit from an ALTCS special needs trust. ALTCS Special needs trusts are commonly set up for certain circumstances, such as when the parents of a developmentally disabled adult wish to ensure their child has a good financial future once the parents can no longer care for them. ALTCS Special needs trusts make sure the beneficiary of the trust does not lose important state or federal benefits if their circumstances temporarily change. Usually, a family member or trusted friend is the trustee for a special needs trust on the disabled person’s behalf. Special needs trusts are also sometimes called supplemental needs trusts. They can also be used to receive an inheritance or settlement without the disabled person losing nursing benefits or other benefits they may be using.
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