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Additionally, if funds placed into a Miller trust are then transferred for the sole benefit of the person’s spouse, a transfer penalty will not be imposed. However, if the funds are to be used for this purpose, the terms of the trust must state that the trust property can be used only for the benefit of the individual’s spouse while the trust exists and that the trust cannot be terminated and distributed to any other entities for any other purpose. Miller Trusts have been developed basically for the sole purpose of allowing an individual with income more than the SIL to become Medicaid eligible.6 It is a statutorily permissible work- around of the inflexible income cap of the SIL. SIL is used for home and community-based services. The method in which income is treated and budgeted when an individual has a Miller trust is discussed in Sections 3325.05.00 and 3325.10.00. 3320.15.00 TRANSFER OF PROPERTY - HCBS The transfer of property requirements detailed in Section 2640.10.00 and following subsections are applicable to individuals who are approved for home and community-based waiver services. During a transfer penalty, waiver services are not paid by Medicaid or the waiver service plan; only state plan services, such as doctor visits, are reimbursed. 3325.00.00 INCOME ELIGIBILITY FOR HCBS There are two eligibility budgeting methods that may apply to waiver applicants, depending on the type of waiver and whether the applicant is a child or an adult, single or married. These methods are the Special Income Level (SIL) test and regular budgeting. A person whose eligibility is determined under the Aged, Blind, or Disabled categories must pass the SIL test to be considered categorically eligible for Medicaid. Children under 19 can qualify either under regular budgeting rules in a Hoosier Healthwise category or can be determined under the Blind or Disabled category. Once a person passes the SIL test, a post-eligibility calculation is completed to determine the spend-down amount if the applicant/recipient is eligible under the Special Income Level. The waiver liability amount will be referred to as the “HCBS waiver liability”. Refer to Section 3315.00.00 which explains the circumstances that allow the use of the Special Income Level. If an applicant or recipient meets the waiver criteria to receive services under an approved waiver (refer to IHCPPM 3305.00.00) and the person’s eligibility is being determined under a category that is not MED 1, then the SIL test will not apply. Such a person will have eligibility determined under the financial rules of the other category that is not MED 1.