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

When the beneficiary of a Mississippi Miller Trust dies, money left in the trust does not pass to the family like an ordinary inheritance. On the claimant's death the trust terminates and the trustee gives the Division of Medicaid written notice, then pays the accumulated trust income to the 'Division of Medicaid, State of Mississippi,' up to the total medical assistance the Division of Medicaid paid on the claimant's behalf that has not previously been repaid. The same payback occurs at each annual review if income has accumulated in the trust, and when Medicaid eligibility ends, when income no longer exceeds the limit, or when the trust is otherwise terminated. The Division of Medicaid notifies the trustee of the amount due; payment and correspondence may be mailed to the Mississippi Division of Medicaid, P.O. Box 2222, Jackson, MS 39225. Only the balance remaining after the Division of Medicaid is reimbursed goes to the claimant's other beneficiaries. The trustee should resolve the State'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.