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

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 how to avoid each and the order in which to verify them before submitting the Medicaid application.

1. 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
2. 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
3. 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
4. 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 (personal needs allowance if the entire income is deposited; community-spouse allowance; the beneficiary's incurred medical expenses; the cost of medical assistance). The account should be largely depleted each month; letting funds accumulate is a defect. — IN FSSA Miller Trust template
5. 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
6. 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
7. 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

Why I wrote this

I'm James Whitfield. I built this site after spending weeks helping a family member through a Miller Trust setup. The free state PDF told us what fields to fill in and stopped there. The first attorney we called quoted $2,200. The second wanted $1,500 and a six-week wait. The bank refused to open the account twice. Between the policy manual, the bank counter, and the Medicaid application window, there was a real gap — and that gap is what this kit fills.

I'm not an attorney. I'm a researcher who has now read every FSSA policy section that covers Qualified Income Trusts. I publish what I learned, with citations on every claim. I won't advise you on your specific situation; for that, you need a Indiana-licensed attorney.

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; 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. We explain how it works and how to fund and maintain it. FSSA's instructional packet contemplates the template being completed by an attorney or legal counsel.

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.

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.

Do you offer a refund?

Yes — money back if FSSA rejects the Miller Trust for any reason traceable to following the kit. Email support@millertrustguide.com with the agency's stated denial reason and we issue a full refund within one business day.

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.

Do you need an EIN to open a Indiana Miller Trust account?

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.

Who can serve as trustee of a Indiana Miller Trust?

Indiana's official documents do not restrict who may serve as trustee — the FSSA template imposes no named restriction and does not bar the applicant or spouse from serving. The settlor is typically the applicant; a legal guardian, an attorney-in-fact under a Power of Attorney, or a Medicaid authorized representative may establish the trust (FSSA's bank memo states a general financial or health-care POA should be sufficient). The template provides for a successor trustee, and if no named trustee is willing or able to serve, any interested person may apply to the primary beneficiary to be appointed. The trustee makes the monthly distributions in the required priority no later than the last day of the month after the income is received, and the account should be largely depleted each month. Because Indiana leaves trustee selection open, and FSSA's packet contemplates attorney involvement, families with any complexity should confirm their choice with an Indiana elder-law attorney.

When does Indiana Medicaid coverage begin after the Qualified Income Trust is set up?

Coverage begins the calendar month the QIT is signed, the trust account is opened, and enough of the applicant's income is deposited to bring remaining countable income below the CMS January 2026 figures special income limit of $2,982/month — all in the same calendar month. There is no back-dating, so every month of delay is another month of full private-pay care ($8,486–$10,357/month in Indiana). Source: FSSA Indiana Health Coverage Programs Eligibility Policy Manual §2615.75.15 (Certain Trusts Receiving Special Consideration); 405 IAC 2-3-29 (Qualified Income Trust / Miller Trust).

What happens to the money in a Indiana Miller Trust when the beneficiary dies?

On the primary beneficiary's death the trust terminates and the trustee distributes any remaining trust property to the Indiana Family and Social Services Administration (or its successor) up to the total medical assistance Indiana paid on the beneficiary's behalf; only the excess after FSSA is reimbursed goes to the settlor's named distributees. Funds remaining in a Qualified Income Trust/Miller Trust as of the date of death are expressly subject to the State's claim through Indiana's Medicaid Estate Recovery Program. Payment is made to the 'Treasurer, State of Indiana' at the Medicaid Estate Recovery Program, Indiana FSSA, 402 W. Washington St., W451, MS 27, Indianapolis, IN 46204. The trustee should resolve the State's claim before distributing any balance and keep proof of payment.

Can you set up a 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 a 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.

Primary sources

State agency sources

Every operational claim in this kit cites a primary FSSA document. Verify directly:

• Official template: FSSA — Indiana Health Coverage Programs Eligibility Policy Manual §2615.75.15 (Certain Trusts Receiving Special Consideration); 405 IAC 2-3-29 (Qualified Income Trust / Miller Trust) . Indiana's Family and Social Services Administration (FSSA), Office of Medicaid Policy and Planning (OMPP), publishes an approved Qualified Income Trust (Miller Trust) template — an irrevocable trust funded only with the beneficiary's income that names the Indiana FSSA as remainder beneficiary up to the total medical assistance paid, governed by the Indiana Trust Code (IC 30-4). FSSA's Instructional Packet provides the template and notes it is intended to be completed by the applicant's attorney or legal counsel; the kit explains how the published form works and links you to FSSA's own materials. Indiana is one of only two states (with New Jersey) that publishes an official memo telling banks how to open the account.
• Policy manual: FSSA policy manual (section Indiana Health Coverage Programs Eligibility Policy Manual §2615.75.15 (Certain Trusts Receiving Special Consideration); 405 IAC 2-3-29 (Qualified Income Trust / Miller Trust)).
• FSSA Memo to Banks — What to tell the bank: FSSA — FSSA Memo to Banks — What to tell the bank . The official FSSA memo for the bank: a Miller trust is established with the beneficiary's Social Security number and does NOT use an EIN (a grantor trust under IRC §671), with the IRS reference to confirm it; the account takes a monthly deposit and is nearly depleted each month; and a general financial or health-care Power of Attorney should be sufficient to establish the trust. Only Indiana and New Jersey publish a memo like this.
• Instructional Packet for Establishing a QIT (detailed): FSSA — Instructional Packet for Establishing a QIT (detailed) . FSSA's full instructional packet — an overview of QITs/Miller trusts, how to establish the trust bank account at a financial institution, and the FSSA-approved template.
• Instructional Materials for Miller Trusts (short): FSSA — Instructional Materials for Miller Trusts (short) . The condensed Step 1–4 version, including where to submit the completed trust (by fax, by mail, or to any local FSSA Division of Family Resources office) and a pointer to the current Special Income Level.
• Additional FAQs on Miller Trusts: FSSA — Additional FAQs on Miller Trusts . FSSA's follow-up FAQ — the 1634 transition that created the QIT requirement, clarifications to the template wording, and answers to common edge-case questions.