What is an Income-Only Trust?
The Income-Only Trust (IOT) is a type of Special Treatment Trust (STT) which given specific circumstances allow people, who would not otherwise qualify due to excess income, to become income eligible for ALTCS. The income placed in a STT is not counted for the ALTCS income tests; however, AHCCCS is authorized to recover the cost of these benefits from the trust upon the death of the customer or termination of the trust.
The trust must meet certain conditions to qualify as a STT. Failure to meet these conditions disqualifies the trust from special treatment. Every STT is reviewed by AHCCCS to ensure that they meet all conditions for special treatment.
An IOT can allow a customer to qualify for ALTCS when their monthly gross income is determined to be more than 300% of the Federal Benefit Rate (FBR).
An IOT can also be called a stream-of-income trust, income-cap trust, or Miller trust.