What Happens to a Miller Trust When the Beneficiary Dies in Colorado?

When the beneficiary of a Colorado Miller Trust dies, money left in the trust does not pass to the family like an ordinary inheritance. On the earlier of the member's death or the trust no longer being required for Medicaid eligibility, the trust terminates and the trustee distributes any amount remaining — up to the total medical assistance Colorado paid on the member's behalf — to the Colorado Department of Health Care Policy and Financing, no later than three months from the date the trust is required to terminate (HCPF may grant an extension if the trustee submits a written request within two months of the terminating event). No expenses may be paid and no other person is entitled to payment until HCPF has been reimbursed; any balance remaining after HCPF is paid goes to the member if living, otherwise to the member's estate. In practice the trustee contacts HCPF's Trust Policy and Recoveries Section (preferred method: email at medicaid.trusts@state.co.us), remits the balance with a record of the trust's deposits and withdrawals (a copy of the trust account's bank statements is often sufficient), and may mail documents to the Trust Policy and Recoveries Section, Colorado Department of Health Care Policy and Financing, 303 E. 17th Avenue, Denver, CO 80203. The trustee should resolve HCPF's claim before distributing any balance and keep proof of payment. Because most of the applicant's income flows through the trust each month to pay for care, the balance remaining at death is usually small. This guide is informational only and is not legal advice.