19 HќќѠіђџȱ юћјђџ ѝџіљ 2014 COMPLIANCE CONNECTION Question: We have recently received a number of customer inquiries concerning establishing a Miller Trust. What is a Miller Trust, and why is it now so in demand? Answer: A Miller Trust, which ȱȱȱȱȱȱ ęȱ Income Trust (QIT), is a trust account established by an Indiana ȱę¢ȱȱȱ purpose of continuing to qualify ȱȱ ȱęǯȱ ȱ recent increased demand for Miller Trusts results from changes to the requirements for Medicaid eligibility in Indiana. ȱ ȱŘŖŗřǰȱ ȱȱęȱ changes to the way that it administers its Medicaid program. Indiana has historically been what is referred ȱȱȱȃŘŖşǻǼȄȱǯ1 In general terms, this means that Indiana did not follow federal guidelines for Medicaid eligibility and applied, instead, stricter eligibility requirements. Indiana is transitioning to a ȃŗŜřŚȄȱǯ2 As a 1634 state, Indiana will follow the federal guidelines for Medicaid eligibility, and any individual who receives Supplemental Security Income (SSI) will automatically qualify for Medicaid. Further, under the new rules, Indiana will no longer be required to operate a spend-down program. The Medicaid changes, which will ȱěȱ ȱŗǰȱȱȱȱ income of all individuals who apply for institutional (nursing home) Medicaid or home- and communitybased services be tested against a new ȃȱȱǯȄ3 To the extent ȱȱȂȱȱ¡ȱ the special income level, the applicant will be required to deposit the income in a Miller Trust, or lose Medicaid eligibility. This is driving increased demand for Miller Trusts at Indiana ęȱǯ When establishing a Miller Trust account on behalf of your customers, you should be aware that the Indiana Family and Social Services Administration (FSSA) has a number of minimum requirements for a valid Miller Trust. The requirements include the following: % The assets placed in the trust must ȱȱȂȱȱ¢Dz % No resources, except money resulting from the accumulation of ȱȂȱǰȱȱȱȱ of the trust assets; % The trust must be irrevocable; % The trust must state the following: ȃ ȱȱȱȱȱę¢ǰȱ the trust assets shall be paid to the Medicaid agency of the State of Indiana up to the total amount of the Medicaid payments made to ȱȱȱȱȱę¢ǰȄȱȱ ȱ¢ȱȱȱěDzȱ and % The trust must be properly executed. Additional guidance on the establishment of a Miller Trust, including a template trust agreement, is ȱȱȱ Ȃȱ ǯȱ Oftentimes the trustee is a family member or friend, in which case the bank is simply opening a depository account for the trust. However, in cases where the bank is the trustee, in addition to complying with the requirements of the FSSA, you should ęȱȱ¢ȱȱȱȱ powers, as well as appropriate policies and procedures for the management of trusts, prior to establishing any Miller Trusts on behalf of your This information is provided for general education purposes and is not intended to be legal advice. ȱȱȱȱȱęȱȱȱ to how this information applies to your institution’s circumstances or situation. 1 See Social Security Amendments of 1972, Pub. L. No. 92-603, § 209(b), 86 Stat. 1329, 1381 (1972). 2 See 42 U.S.C. § 1383c. 3 The special income level for 2014 is $2,163 per month. customers. If you are unsure of your ęȱȂȱ¢ȱȱ- lish and maintain Miller Trusts, you ȱȱ ȱ¢ȱȂȱ legal counsel. ABOUT COMPLIANCE CONNECTION In order to address compliance inquiries from members, IBA provides Compliance Connection, an assistance ȱěȱȱȱ Ȭęȱȱ ǯȱ ȱȱĴȱȱȱǰȱ ȱ Compliance Connection will refer the bank to a law ęǯȱ ȱȱȱȱȱ ȱȱ¢ȱLarry C. Tomlin, partner with Krieg DeVault LLP, Indianapolis, and IBA compliance consultant. Submit Compliance ȱȱȱ ȂȱAmber R. Van Til at avantil@indianabankers.org. iAB Financial Bank, Fort Wayne, in March recognized associates celebrating milestone anniversaries during 2014. The bank hosted a recognition breakfast and gifted a $1,000 donation to A Hope Center to commemorate partnerships with ěȱȱ¢ǯȱ ȱ£ȱ employees include: Carol Ebler – 45 years of service, and a member of the IBA Forty Year Club; Phylian Keefer, Kevin Roth – 35 years; Nancy Bicknese – 25 years; and Mary Anne Frank, Cindy Langel, Cheri Meek, Noreen Preston, Marilyn Scherer and Brenda Stuckey – 20 years. ANNIVERSARY MILESTONES $ VDOXWH WR EDQNHUV ZLWK \HDUV of service
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