Indiana Miller Trust Setup Guide — Qualify a Family Member for Medicaid Before the Next Billing Cycle

Before you buy

Who this kit isn't for

We'd rather you not buy something you don't need. Skip it if:

• The income is at or under $2,982/month. A Miller Trust usually isn't needed. Check the number with the free income-cap check.
• The obstacle is savings or property, not income. A Miller Trust only deals with income. See Medicaid asset protection trusts for the asset side.
• Money or property was given away in the last five years, or other trusts are involved. That needs an Indiana elder-law attorney.
• You want someone to fill it in and file it for you. That's what an attorney does. This kit is for doing it yourself, or for checking someone else's work.

The bank step

The bank refusal nobody warns you about

You walk into your branch with the signed trust. The teller calls a manager. The manager has never seen one. They ask for an EIN. They tell you to come back with an attorney. You drive home with an empty trust account and a Medicaid clock ticking.

This is the single most common reason Indiana families lose a month of benefits, and it has nothing to do with the trust itself — it is a bank-procedure problem. The kit's bank section gives you the exact language to cite at the counter, the FSSA policy reference to read aloud, and a printable resolution letter you can hand to the branch manager so they can escalate inside their own bank instead of sending you away.

Refusals the kit walks you through:

• Branch asks for a tax ID (EIN) for the trust.
• Branch wants the POA to specifically authorize creating a trust.
• Branch is unsure what kind of account this is.
• Branch has never opened a Miller Trust / QIT account.

Each refusal has a corresponding response in the kit, with the FSSA citation behind it.

Avoid these

The 7 most common Indiana denial reasons

Every denial reason below cites FSSA policy. The full kit explains each one in context and the order in which to verify them before submitting the Medicaid application.

▸ A resource (not income) is placed in the trust

Only the primary beneficiary's income may be placed in the trust. Per 405 IAC 2-3-29 and §2615.75.15, depositing a resource — savings, a gift, the proceeds of a sale, or another person's money — makes the entire account a countable resource and can push the applicant over the $2,000 resource limit. — IN FSSA Miller Trust template; 405 IAC 2-3-29; IHCP §2615.75.15

▸ The trust is not funded in the month income is received

Eligibility for the income disregard begins only the month enough of the applicant's income flows into the QIT. A month in which the income did not go through the trust is not covered — there is no back-dating to before the trust was funded. — IN FSSA Instructional Packet; Miller Trust template

▸ Only part of a listed income source is deposited

The trust may receive any or all of the beneficiary's income, but once a source is allocated to the trust, the ENTIRE amount of the income from that source must be deposited into the trust account in the same month it is received. Depositing only part of a listed source (for example, rounding off) breaks compliance for that month. — IN FSSA Miller Trust template; Additional FAQs

▸ The trustee fails to distribute on time

The trustee must make the required distributions no later than the last day of the month after the income is received by the trust, in the FSSA priority order written directly into the trust document: (1) personal needs allowance if the entire income is deposited; (2) community-spouse allowance; (3) the beneficiary's incurred medical expenses; (4) the cost of medical assistance; and (5) any other payments to or for the beneficiary that will not cause a loss or reduction of Medicaid benefits. The account should be largely depleted each month; letting funds accumulate is a defect. — IN FSSA Miller Trust template; IHCP §2615.75.15

▸ Missing State-of-Indiana remainder (payback) clause

The trust must state that upon the beneficiary's death the remaining trust property is paid to the Indiana FSSA (the Medicaid agency) up to the total medical assistance Indiana paid. A missing or altered payback clause invalidates the trust; the FSSA template already contains the required clause. — IN FSSA Miller Trust template; IHCP §2615.75.15

▸ The trust is not irrevocable

FSSA's template and instructions require the trust to be irrevocable. A revocable trust does not meet FSSA's approval standard for a Miller trust. — IN FSSA Instructional Materials; Miller Trust template

▸ Income is assigned to the trust instead of deposited

The beneficiary's income may not simply be assigned to the trust on paper — it must remain the individual's income and actually be delivered into and flow through the trust account each month. A separate, dedicated trust account is required; commingling other funds is not allowed. — IN FSSA Miller Trust template; 405 IAC 2-3-29

The author

Who's behind this

I'm James Whitfield. I read every FSSA policy section on these trusts and tied every step in this kit to the section it comes from, so you can check any of it yourself. I'm a researcher, not an attorney. For advice on your own situation, an Indiana-licensed attorney is the right call.

Questions

Frequently asked questions

▸ Is the Indiana Miller Trust Kit legal advice?

No. This kit is informational only and is not legal advice. We are not attorneys and we do not practice law. The kit teaches you how to use Indiana's publicly-published Qualified Income Trust (Miller Trust) template and FSSA's companion materials. FSSA's own packet suggests the template be completed by an attorney or legal counsel — because FSSA hands you the template with no walkthrough. That gap is what this kit closes: the step-by-step instructions, the funding worksheet, and the FSSA policy citations the packet itself doesn't include. For advice on your specific situation, consult an Indiana-licensed elder-law attorney.

▸ What does the kit include?

A step-by-step operational guide: a plain-English explanation of how an Indiana Miller Trust works, direct links to the official FSSA template, the memo to banks, the detailed and short instructions, and the Additional FAQs, guidance on the fields you complete, a monthly funding worksheet, the bank-account walkthrough built around FSSA's bank memo, the month-by-month funding process, and an Indiana-specific list of common denial reasons. Delivered as a single PDF.

▸ Do you provide the trust template itself?

No. We never author or host trust instrument text. The kit links you to the FSSA-published template on Indiana's .gov site. You download the template directly from FSSA. FSSA's instructional packet contemplates the template being completed by an attorney or legal counsel, since the packet itself includes no walkthrough — we explain how it works and how to fund and maintain it, so you're not starting from a blank page.

▸ Who has to set up a Miller Trust in Indiana?

An applicant for institutional (nursing facility) Medicaid or home- and community-based waiver services whose gross monthly income is above Indiana's Special Income Level ($2,982/month in 2026) must use a Qualified Income Trust to become income-eligible. Indiana tests each spouse individually, so if both spouses are over the limit, each needs their own trust.

▸ Does an Indiana Miller Trust need an EIN?

No. Indiana publishes an official memo to banks confirming a Miller trust is established with the beneficiary's Social Security number and does not use an EIN (it is a grantor trust under IRC §671). The kit includes the strategy for handing that FSSA memo to a branch that asks for an EIN.

▸ How much of my income goes into the trust?

You may put all or part of your income into the trust, but it must be enough to bring your countable income to or below the Special Income Level. If you deposit your entire income, the trustee distributes a personal needs allowance ($52/month) back to you; if you deposit only the amount over the limit, the personal needs allowance does not apply. Once you list an income source on the trust, the entire amount of that source must be deposited each month.

▸ When does coverage begin?

Eligibility for the income disregard begins the month enough of your income flows through the Miller Trust — there is no back-dating to before the trust was funded. The trustee must make the required distributions by the last day of the month after the income is received, and the account should be nearly empty each month.

▸ Is my Social Security counted before or after the Medicare Part B premium for Indiana's Miller Trust?

Before. Indiana's FSSA counts unearned income — including Social Security — at its gross amount for purposes of the Special Income Level test and the Miller Trust funding calculation. FSSA's own instructional materials specifically list 'payment of Medicare premiums' as an example of a deduction that does NOT reduce income for this purpose. The Medicare Part B premium is instead accounted for later, as a separate deduction in the post-eligibility patient-liability calculation (Indiana Health Coverage Programs Policy Manual §3455.15.10) — the same stage where the spousal and family allowances are applied, not as part of deciding whether or how much must go into the trust.

▸ What is the official order that money must be paid out of an Indiana Miller Trust each month?

FSSA's own trust template writes the payment order directly into the legal document you sign, in this priority, due no later than the last day of the month after the trust receives the income: (1) a monthly personal needs allowance to you, but only if you are depositing your entire income into the trust; (2) an allowance to your spouse, up to the community-spouse minimum monthly maintenance needs allowance under Title XIX; (3) your incurred medical expenses as defined by Medicaid; (4) the cost of medical assistance provided to you (your facility patient-liability/share of cost); and (5) any other payments to or for you that will not cause a loss or reduction of your Medicaid benefits. This exact five-step order appears in the FSSA template itself and is echoed in the Indiana Health Coverage Programs Policy Manual §2615.75.15.

▸ What if my bank refuses to open the trust account?

Bank refusal is common on a first attempt. Indiana is one of only two states with an official FSSA memo to banks, and the kit is built around it: the memo confirms the account uses the beneficiary's SSN (not an EIN), that a general financial or health-care POA should be sufficient to establish the trust, and how the monthly deposit/payment account works. The kit walks you through handing that memo to the branch and escalating if needed.

▸ Can I be my own trustee in Indiana?

Indiana's official documents don't restrict who may serve as trustee — the FSSA template doesn't bar the applicant or spouse from serving. A legal guardian, an attorney-in-fact under a Power of Attorney, or a Medicaid authorized representative may also establish the trust. Because Indiana leaves this open, families with any complexity should confirm their choice with an Indiana elder-law attorney.

▸ What happens to the trust after the person on Medicaid passes away?

The trust terminates and the trustee distributes remaining trust property to the Indiana FSSA up to the total medical assistance Indiana paid on the beneficiary's behalf, through Indiana's Medicaid Estate Recovery Program. Only the excess after FSSA is reimbursed goes to the settlor's named distributees.

▸ Do you offer a refund?

Yes — money back if FSSA rejects the Miller Trust because of something in the kit. Email support@millertrustguide.com within 30 days of purchase with the agency's stated denial reason and we issue a full refund within one business day. If the agency hasn't decided within 30 days, email anyway: the guarantee still applies once you have the denial.

▸ Will you talk to me on the phone about my situation?

No. We do not offer phone support and we do not advise on individual situations. For advice on your specific situation, consult an Indiana-licensed elder-law attorney — you can find one through the Indianapolis Bar Association's Indy Lawyer Finder or Indiana Legal Services.

▸ Will FSSA accept a Miller Trust I fill in myself?

FSSA's Miller Trust instructions say the trust must be properly executed, by having signatures on all the appropriate lines, and that the state's template meets these requirements. FSSA recommends consulting legal counsel when using the template but says it is not a requirement. The settlor is typically the applicant, though a legal guardian, attorney-in-fact, or Medicaid Authorized Representative can serve instead. Acceptance is the agency's decision, so no outcome can be promised. The kit walks through signing and naming the trustee.

▸ Which banks will open a Qualified Income Trust (QIT) bank account in Indiana?

There's no published list of banks that offer QIT accounts — most retail branches simply haven't opened one before, since it's an uncommon account type, not because anything is wrong with the trust itself. In practice: larger banks (Chase, Wells Fargo, Bank of America) generally have a centralized trust department that can process the request even when a branch teller can't; full-service branches (often a market's main branch) open commercial and trust-style accounts more routinely than limited-service branches; and community banks and credit unions are frequently the most willing, since their account-opening process tends to involve a human review rather than a screen-driven template. Indiana publishes an official 'What to tell the bank' memo stating that a Miller trust is established with the beneficiary's Social Security number and does NOT use an EIN — it is a grantor trust under IRC §671, and the memo reproduces the IRS Internal Revenue Manual instruction not to assign an EIN to a Miller-type trust. The memo also states that a general financial or health-care Power of Attorney should be sufficient to establish the trust. Hand the branch this FSSA memo if they ask for an EIN; only Indiana and New Jersey publish one. The kit includes the exact script to use at the counter and a printable letter for a branch manager if the first attempt is refused.

▸ Can you set up an Indiana Miller Trust without a lawyer?

For the core Qualified Income Trust setup, the task is following FSSA's publicly-published template and opening a specific kind of bank account — work many families do themselves. Attorneys typically charge $1,000–$2,500 for it. For complex situations (significant assets, prior gifting, second marriages, multi-state property), consult an Indiana-licensed elder-law attorney. Miller Trust Guide is informational only and is not legal advice; we do not draft the trust or advise on individual situations.

▸ Can an attorney, paralegal, or care manager use this kit for a client?

Yes. It explains Indiana's own published Miller Trust process in plain language, which works whether you're doing this for your own family member or for a client — professionals handling a case outside their usual specialty use it as a working reference this way. It doesn't replace your own judgment on a specific client's facts and isn't personalized advice; it's the same walkthrough of Indiana's official form either way. If you expect to use it across more than a handful of clients or want redistribution rights, email support@millertrustguide.com about licensing options.

▸ Do I need a Miller Trust in Indiana?

It applies when the person who needs long-term-care Medicaid has gross monthly income over Indiana's income cap of $2,982 (CMS January 2026 figures). Count gross income before any deductions: Social Security, pension, annuity and similar income paid in their name. It applies the same way whether you're their child, their spouse, or a professional helping them. If the income is under the cap, a Miller Trust usually isn't needed. If you're the spouse staying at home, only the applicant's own income counts toward this cap, not yours; separate federal protections, a resource allowance and, when your own income is low, a monthly income allowance, keep you from being left without enough to live on.

▸ What if FSSA changes the form or the income cap after I buy?

If FSSA revises its form or policy within 12 months of your purchase, email support@millertrustguide.com and we'll send the updated edition free. This page shows the date it was last verified against FSSA (September 9, 2026). The income cap is different: it's a routine yearly adjustment that follows the federal benefit rate each January, FSSA publishes the new figure, and you use it in place of the old one; the steps stay the same.

Keep reading

Step-by-step Indiana guides

New to this? What Is a Miller Trust? covers the plain-English basics — what it is, why states use different names for it, and how it differs from a Medicaid Asset Protection Trust. Below are the free operational walkthroughs that go deeper on the questions Indiana families ask most.

Primary sources

State agency sources

Last verified against FSSA on September 9, 2026. Email support@millertrustguide.com if anything below conflicts with what FSSA currently publishes — we correct verified discrepancies within five business days.