Steps to Take After You Have Obtained Your Miller Trust

Instructions for trustee

miller trust action list

A.tax id nUMBER

The Trust you are going to establish is a new tax entity. Therefore, you should file an online application with the IRS to get a tax ID number for the trust. You will need this ID to set up a bank account for the trust. The application is available at:

If you have trouble getting the tax ID number, your bank may be able to assist.

B.The Bank Account

1.A copy of the Trust papers should be taken to a bank and a new account should be opened. It will be best to open a checking account. Please note, credit unions typically will not set up a Miller Trust account. You will need to go to a bank.

a)Make the account in the name of the person who is applying for Medicaid (the settlor). The name of the account should be the “(Insert Name)Irrevocable Income Trust Account.”

b)The trustee should be theonly signer on the account as the trustee. The settlor cannot be authorized to sign on the account.

2.You should consult with the Division of Public Assistance (DPA) to determine how much money initially needs to be deposited into the trust account and to establish a monthly budget.

_____ 3.Complete the bank’s application to deposit social security and any other regular income checks directly into the new account.

4.Each month, the settlor can receive a living allowance from the trust, without affecting his/her eligibility for Medicaid. If possible, arrange to automatically transfer that amount of money from the Trust account to herpersonal bank account every month. The rest of the money can be spent on allowable expenses, i.e. legitimate expenses OTHER THAN food or shelter. If you have questions as to what the money can be spent on, consult with the DPA. Note: the rules for disbursement are more restrictive if the settlor qualifies for the Medicaid Choice Waiver Program.

_____5.When Permanent Fund Dividends come out, these do not count as “income” for purposes of the trust. They do not need to be deposited into the trust account. However, you do have to report these to the Division of Public Assistance (DPA). DPA will make some technical changes to the case until the dividend or bonus is completely spent. Once it is spent, let DPA know, and they will change the status back to normal.

____6. It is a good idea to give a copy of the trust documents to a trusted family member.A new trustee will have to be appointed in case you become ill, disabled, or otherwise incapable of serving as the trustee. It is VERY IMPORTANT that there is ALWAYS a trustee for the trust. Otherwise, the settlor could lose hisMedicaid.

C.REGISTERING the trust

1.The trustee will need to sign and file the one page Registration of Trust form. There is a $50 filing fee.

D.THE Division of Public Assistance Office

The DPA worker will request some if not all of the following documents, so be sure to keep an extra copy of them, in addition to a copy for your own records:

a)a copy of the Trust document.

b)a copy of the deposit slip or other receipt from the bank showing the creation of the trust account.

c)a copy of the direct deposit application form showing the income that will be deposited into the new account, and the starting date of the direct deposit.

d)a copy of the Registration of Trust document, which will provide proof that the trust has been filed with the court.

E.agency approval of your trust

The DPA worker will send a copy of the Trust to someone else in the DPAfor agency approval.

Assuming all other things are in order, the Medicaid application will be approved.The settlor will receive a notice of approval that will reference the Miller Trust. Benefits are retroactive to the beginning of the month the trust becomes effective.

F.medicaid renewal – agency review of trust

At the time of renewal, the DPA worker will review the trust and all trust-related documentation in the file. The DPA worker will contact you and confirm that you remain the Trustee and get current contact information. The DPA worker will request a current bank statement and review for discrepancies. If there are any discrepancies, the worker will investigate to determine whether the Beneficiary remains eligible.

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