Helping Seniors Qualify for Government Benefits

June 7, 2024

Qualified Income Trust or Miller Trust - What You Should Know

Something I want to talk to you today is a thing called a Qualified Income Trust. Now, the common everyday term for this is also a Miller Trust, and it nothing to do with the beer. This is an estate planning strategy I employ for my clients that helps them receive government benefits when they have a higher income. This type of trust allows certain people to be able to qualify for government benefits, such as nursing homes benefits and things of that nature.

Miller Trust - So how does it work?

Well, first you create the Miller Trust. Within this trust, there are certain restrictions placed on what the money can be used for. Money is essentially set aside only for the benefit of that person and only certain things can be paid for with those funds. The reason I employ this estate planning strategy is because the income cap that the government imposes can be one of the reasons that prevents people from receiving benefits. The current income cap is around $2000 and change in monthly income. So, the way this trust helps is by assigning the income stream to the trust and the trust, not the person, basically gets the income. It's an irrevocable trust, meaning it cannot be changed. It cannot be modified. As a result, it has the ability to “push” the income out of the person's name, reducing their income, thus allowing them to qualify for benefits.

Getting all your questions answered

When I meet with my clients, we discuss what would be most beneficial and advantageous to them and their situation. It is important for us to meet because everyone is different, and I need to help them plan according to their needs and the goals they are trying to achieve. They might want to put all of their income or just some of their income into the Miller Trust. But I recommend to my clients who may benefit from this strategy that they will want to put enough the trust to be sure they qualify for the benefits that they need.

Next steps...

Once the Miller Trust is in place and their monthly income is being streamed to the trust, they can run the benefits application again and now that income that has been moved out of the person’s name and into the trust, so it is no longer counted. Now that my clients qualify under the income test, the Miller Trust has done its job.

What's the "down side"?

Now, here's kind of the other shoe that has to fall. So, the downside of a Miller Trust is that all of the accumulated funds in the trust have to go to repay the government for whatever benefits were paid out. So, if over time, if there is $10,000 has accumulated in the Miller Trust, those $10,000 dollars, upon the death of the individual, will go to the state. Now, in most cases, it is a better bargain to do the Miller Trust and go ahead and have the income pushed out and possibly lost in the future because the benefit of having the government pay for nursing home benefits is much more valuable in the moment of need.

What are other things to consider?

Another important thing to keep in mind is that you can do some of this estate planning ahead of time. If you plan for “what if I become incapacitated?” there are certain types of trusts that we can put in place. There could be some revocable trusts that could be started and then they become irrevocable upon a disability. So, as you can see, there's lots of different things that we can do if we have more “runway” or time to let the plan evolve.

The other thing that's important is that there's a five-year look back, which means the government can look back five years and say, “Hey, during these five years, you still had these assets, so you don't qualify”. Now, that's more along the lines of the assets, and that's beyond what the trust does. The Miller Trust will only help my clients qualify under the income test; it doesn't do anything to qualify under the asset test.

Bottom line, the more time you have to plan for the future, the much better off you will be in being able to protect your assets and provide funds for your family once you pass, instead of it going straight to repay the government.

If you would like to take some time to find out more, contact us today to discuss further by calling 956-791-5422 in Laredo, Texas.

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Molding Your Financial Future in 2025

January 17, 2025

As we step into the new year, I find myself reflecting on the countless entrepreneurs, professionals, and business owners I’ve worked with throughout my career. Helping clients mold a shield of protection around their assets has been one of the most rewarding aspects of my practice. Time and time again, I’ve witnessed that success isn’t reserved for geniuses, nor does it require a fancy degree. The secret lies in action, strategy, and discipline—traits anyone can cultivate to achieve and maintain wealth. The Myth of Instant Wealth How often have we heard someone say, “When I win the lottery, I’ll finally be set”? It’s a common refrain, but let’s examine the reality. Imagine winning $10 million in the lottery. After choosing the lump sum option and paying taxes, you might walk away with only a fraction of that—perhaps $2 million. Without a solid financial plan, it’s no surprise that many lottery winners end up broke within a few years. True wealth isn’t about luck or flashy possessions. It’s about what you do with your resources and how you protect them. If you look around your community, the truly wealthy aren’t necessarily the ones with the biggest houses or newest cars. They’re often the ones who’ve taken calculated risks, lived within their means, and built unglamorous but steady businesses. These individuals mold the clay they’re given, creating shields of protection around their assets that ensure their financial stability for generations. The Trap of Looking Rich We’ve all seen it—the big house, luxury car, and designer wardrobe. But appearances can be deceiving. Many who look wealthy are drowning in debt, spending more than they earn, and chasing the illusion of success. As my wife lovingly calls it, Dickersonism #7: “Looking rich does not MAKE you rich.” True wealth is built on a foundation of solid, income-generating assets, not consumables. Falling into the trap of “keeping up with the Joneses” (or Kardashians) often leads to financial instability and missed opportunities to create lasting wealth. The Cost of Inaction One of the greatest obstacles to wealth and protection is inaction. Henry Ford famously said, “If you think you can, you can. If you think you can’t, you can’t. Either way, you’re right.” Inaction is the path of least resistance, but it’s also the path to missed opportunities and unfulfilled potential. Some hesitate out of fear or over-analysis, a condition I call “analysis paralysis.” It’s easy to get caught up in what could go wrong, but this mindset keeps you stagnant. Every successful person I’ve worked with has one thing in common: they took action. They understood the risks but focused on the rewards, moving forward despite uncertainty. Setting Your Course for 2025 If you haven’t taken steps to mold your financial future, now is the time. Ask yourself: Where do you want to be a year from now? In five years? In ten? Define your goals and begin building the path to reach them. Just as importantly, protect what you’ve built. Not having a plan to shield your assets is like running exposed electrical wiring—sooner or later, you’ll face unnecessary risks. A board-certified estate planning attorney can help you design a plan to safeguard your wealth, ensuring it stays secure for you and your loved ones. Take Control of Your Future Success doesn’t just happen—it’s molded. Listen to trusted advisors, but remember that the final decisions are yours to make. Clarify your vision, take bold steps, and build the life you’ve always dreamed of. At The J.M. Dickerson Law Firm, we’re here to guide you every step of the way. Whether in person, by appointment, or via Zoom, we’re committed to helping you create a legacy of success and security. Contact us today, we can help! South Texas: 956-791-5422 Central Texas: 830-302-4577 Let’s make 2025 your year of action, growth, and protection.

Embracing the Holidays as a Time for Estate Planning

December 20, 2024

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Start the New Year Strong: Four Steps to Success

December 13, 2024

As the end of the year approaches, it’s easy to feel the weight of unfinished tasks and the hustle of the holiday season. Between wrapping up work projects, preparing for family gatherings, and making plans for the future, this time of year can feel overwhelming. But amidst the busyness lies a valuable opportunity—the chance to press reset and prepare for a fresh start. The New Year offers a clean slate, making it the perfect time to reflect, reorganize, and refocus your goals. By dedicating some time to the right activities now, you can set yourself up for success in the months ahead. Here are four key steps to help you start the New Year on solid footing. Step 1: Reflect on the Past Year As the calendar flips to a new year, many of us naturally find ourselves looking back at the previous 12 months. This is the perfect moment to assess your professional and personal accomplishments, challenges, and growth. Ask yourself: • What were my biggest successes this year? • What goals did I miss, and why? • What strategies or habits worked well for me? • Where can I improve moving forward? Reflection isn’t just about identifying wins and losses; it’s about understanding the “why” behind them. Seek feedback from colleagues, mentors, or trusted peers to gain new perspectives. The more honest and thorough your evaluation, the more valuable it will be as a foundation for future planning. Step 2: Create a Game Plan for the Year Ahead Reflection is only the beginning. To make real progress, you need a clear and actionable plan for the year ahead. Start by defining your big-picture goal for the next 12 months. What’s the most important outcome you want to achieve? Once you have that, break it down into smaller, measurable objectives. For example, if your goal is to expand your business, your smaller objectives might include increasing marketing efforts, attending networking events, or launching a new service. Outline the steps needed to achieve each objective and set realistic timelines for completion. Revisit your goals regularly—at least quarterly—to ensure you’re staying on track or to adjust for any changes in your circumstances. Flexibility is key to maintaining momentum throughout the year. Step 3: Declutter Your Inbox An overflowing email inbox can be a constant source of low-grade stress. Ending the year with a streamlined and organized inbox can give you a fresh sense of control as you head into January. Here’s how to tackle it: • Respond immediately to any urgent or unresolved messages. • Delete emails that are no longer relevant. • Unsubscribe from newsletters or mailing lists you no longer find useful. • Create folders and filters to better organize incoming messages moving forward. To keep your inbox manageable, schedule regular cleanups throughout the year. Whether monthly or quarterly, these maintenance sessions will prevent clutter from building up again. Step 4: Knock Out Small Tasks The small, unfinished tasks lingering on your to-do list can be more draining than you realize. Use this time to cross off as many as possible before the New Year begins. • File paperwork that’s been piling up. • Respond to emails you’ve been avoiding. • Wrap up loose ends on ongoing projects. Completing these small but nagging tasks will give you a sense of accomplishment and free up your mental bandwidth for bigger goals in the New Year. Starting January with a clean slate will allow you to hit the ground running. Your Fresh Start A new year is a chance to realign your priorities, set meaningful goals, and approach your work with renewed focus. By reflecting on the past year, setting actionable goals, decluttering your space, and tying up loose ends, you’ll create the foundation for a successful year ahead. Whether you spread these steps out over a few weeks or tackle them all in one day, the most important thing is to commit to the process. A little effort now can make a big difference in how you start the year—and how you finish it. Here’s to making the most of your fresh start!