Miller Trusts to be Established in New Jersey

The Begley Law Group

Moorestown, NJ (Law Firm Newswire) December 9, 2014 – For purposes of Medicaid long-term care services, New Jersey has always been an income cap state. That means that an individual’s income must not exceed 300% of the Federal Benefit Rate (FBR).

Beginning January 1, 2015 that means that an individual’s monthly income cannot exceed $2,199. Historically, individuals in nursing homes were able to qualify for a “Medically Needy” program to spend their income down and qualify for Medicaid. Individuals requiring care in assisted living or at home were not eligible for the Medically Needy program and could not become eligible for Medicaid if their income exceeded the cap.

New Jersey has now obtained a waiver from the federal government, whereby the state will abolish the Medically Needy program and individuals will be authorized to establish “Miller Trusts.”  

Miller Trusts are legal fiction. Under the program, individuals may deposit their excess income into a trust, and that income is not counted for income eligibility purposes. The money in the trust must be distributed for very limited purposes. These Miller Trusts are also known as Qualified Income Trusts (QITs).

QITs must meet certain conditions:

· They must contain only income of the individual.
· They must not contain resources, such as income from the sale of real or personal property or money from a savings account.
· They must be irrevocable.
· They must have a trustee to manage administration of the trust and expenditures from the trust, as set forth in federal and state law.
· New Jersey must be the first beneficiary of all remaining funds up to the amount paid for Medicaid benefits upon the death of the Medicaid recipient.
· Income deposited in the QIT can only be used for specific post-eligibility treatment of income and to pay for costs of care.

There will no longer be a Medically Needy program, even for nursing home Medicaid recipients, although current recipients will be grandfathered. Funds must be deposited in a trust bank account. Bank charges cannot exceed $20 per month. The Social Security number of the beneficiary of the trust is used, not an EIN.

A Miller Trust can be established by the trust beneficiary or by someone else under a power of attorney or legal guardianship, acting on behalf of the trust beneficiary.

Visit www.begleylawgroup.com to learn more about the Begley Law Group.

Colleen Caruso
Begley Law Group, P.C.
509 S. Lenola Road, Building 7
Moorestown, NJ 08057
Tel: 800.533.7227

• MEDICAID AND MEDICARE 2015 COLA NUMBERS
  CMS has released the Medicare and Medicaid numbers for 2015. They are as follows: Medicaid Income Cap[1] $2,199 Maximum Community Spouse Resource Allowance (CSRA)[2] $119,220 Minimum CSRA[3] $23,844 Maximum Minimum Monthly Maintenance Needs Allowance (MMMNA)[4] $2,980.50 MMMNA (July 1, 2014 until June 30, 2015)[5] $1,966.25 Excess Shelter Allowance (July 1, 2014 until June 30,   2015)[6] $589.88 Maximum Resource Limit (Individual)[7] $2,000 Minimum and Maximum Cap on Equity in the Home[8] $552,000 –  $828,000 Medicare Part A Medicare Co-Payment – Skilled Nursing Facility (SNF)[9] $157.50 Hospital Deductible[10] $1,260 Per day Co-Insurance – Day 61 -90[11] $315 Per day Co Insurance – […]
• SOCIAL SECURITY AND INTERNAL REVENUE SERVICE 2015 COLA NUMBERS
  Social Security and the Internal Revenue Service (IRS) have released cost-of-living numbers for 2015. They are as follows: Social Security For 2015 there is a 1.7% COLA increase for Social Security benefits.[1] The Maximum Social Security benefit for a single individual retiring at full retirement age[2]   $2,663 Supplemental Security Income (SSI) – Single[3] $733 Supplemental Security Income (SSI) – Couple[4]$ 1,100 Supplemental Security Income (SSI) – Essential Person[5] $367 Maximum Annual SSI benefit – Single[6] $8,796 Maximum Annual SSI benefit – Couple[7] $13,200 Substantial Gainful Activity (SGA) – Disabled[8] $1,090 SGA – Blind[9] $1,820 Tax Rate Employer and Employee calculated […]
• PROTECTING YOUR ASSETS FROM CREDITORS: ARE YOU BULLET-PROOF? PART 2
  [This article is a continuation of an article appearing in last month’s issues of The Barrister concerning protection of assets from creditors.] Many lawyers and other professionals and owners of business are subject to suit by creditors, often because of the nature of the business activities in which they engage. This series of articles is designed to discuss various steps that can be taken to protect assets from claims of these creditors. Under the Fraudulent Transfer Act, it is critical that steps be taken well in advance of any incident that may lead to a claim or to the filing […]