If you are in an income-cap state, one of the requirements for qualifying for Medicaid is that the person going into the nursing home must meet the income threshold. For example, Texas is an “income cap” state. The income cap changes each year; in 2004 it is set at $1,692 per month. This means that if the person has monthly income even a few dollars over the limit, Medicaid benefits will be denied even if he/she qualifies on all other counts.

Fortunately, a Miller Trust, also known as a Qualified Income Trust ("QIT"), can be used to help lower the amount of income going to the nursing home patient so that he/she can qualify for Medicaid and at the same time provide money for the community spouse at home.

A Miller Trust can be a very helpful tool to not only allow the applicant to qualify for Medicaid, but also to permit the spouse at home to retain a greater portion of the combined income. Thus, the elderly in this situation will likely not have to rely on their children or friends to help them financially during this difficult time.