Who Can Be the Trustee of a Miller Trust in New Jersey?
In New Jersey, the trustee of a Miller Trust (Qualified Income Trust) is whoever manages the trust account — depositing the applicant's income each month and paying out only what DMAHS allows. Per DMAHS, the trustee must be someone other than the Medicaid applicant/recipient — the primary beneficiary may not serve as Trustee. New Jersey law (N.J.S.A. 3B:11-4 et seq.) governs who may serve. The model instrument requires no bond, lets the trust name a successor trustee, and—if no named trustee is willing/able—allows any interested person to be appointed (or, if the beneficiary is incompetent with no guardian/POA, to petition the court). The trustee manages the monthly deposits and disbursements per the beneficiary's Personal Responsibility (PR) form and must provide an annual accounting to the eligibility determining agency. The trustee does not have to be a lawyer or a professional; for the core setup this is a role most families fill themselves. For a complex situation, consult a New Jersey-licensed elder-law attorney. This guide is informational only and is not legal advice.
The trustee does not have to be an attorney or a professional fiduciary. Managing a Qualified Income Trust is an operational job, not a legal one: open the account, move the applicant's income through it each month, and pay out only what DMAHS allows — the same short list of tasks every month.
What the trustee does each month
- Deposits the applicant's income — Social Security, pension, and any other named sources — into the dedicated trust account.
- Pays out only the amounts DMAHS permits: typically the applicant's personal-needs allowance of $50/month, any spousal allowance, and the applicant's share of medical and care costs.
- Keeps simple records of what went in and what came out, so the trust stays compliant and Medicaid has no reason to question it.
Name a backup trustee
Many families name a successor trustee when they set the trust up, so that if the first trustee cannot continue, the trust keeps running without interruption. Either way the New Jersey setup is the same — see the step-by-step setup and what to say at the bank.
Common questions
- Does the trustee of a New Jersey Miller Trust have to be a lawyer?
- No. Managing a Qualified Income Trust is an administrative task — opening the dedicated account, depositing the applicant's income each month, and paying out only the amounts DMAHS allows. Per DMAHS, the trustee must be someone other than the Medicaid applicant/recipient — the primary beneficiary may not serve as Trustee. For advice on your specific situation, consult a New Jersey-licensed elder-law attorney.