405 IAC 2-3-29 - Qualified Income Trust; Miller Trust

Authority: IC 12-15-1-10

Affected: IC 12-15

Sec. 29.

(a) For purposes of this section, the following definitions apply:

(1) "Special income level (SIL)" has the meaning set forth in 405 IAC 2-1.1-1(g).

(2) "Trust" refers to a Qualified Income Trust or Miller Trust, which complies with 42 U.S.C. 1396p(d)(4)(B).

(b) Individuals residing in nursing homes or receiving home and community based waiver services that have income over the SIL must create a trust and request approval for Medicaid.

(c) A transfer of resource penalty does not apply to a trust if the trust is:

(1) established for the benefit of an individual; and

(2) funded solely by the income of an individual, including accumulated interest.

A trust described in this subsection can be revocable or irrevocable.

(d) Under 42 U.S.C. 1396p(d)(4)(B)(ii), upon the death of a beneficiary, the state of Indiana receives the remaining funds in a trust up to the amount of Medicaid expenditures paid on the member's behalf.

(e) Allowable distributions from a trust include the following:

(1) A monthly personal needs allowance for a primary beneficiary if they are depositing their entire income into the trust.

(2) A monthly amount to the spouse of a primary beneficiary sufficient to provide but not exceed the minimum monthly maintenance needs allowance for the spouse, as provided by Title XIX of the Social Security Act.

(3) Incurred medical expenses of a primary beneficiary.

(4) The cost of medical assistance provided to a primary beneficiary, such as the patient liability.

(f) A trust must be funded at least each month in the amount of the beneficiary's monthly income exceeding the SIL.

(g) Funds in a trust must:

(1) be maintained in a separate account from any other account; and

(2) not be commingled with other accounts.

Notes

405 IAC 2-3-29

Office of the Secretary of Family and Social Services; 405 IAC 2-3-29; Filed 6/26/2024, 10:03 a.m.: 20240724-IR-405230819FRA