Do You Need a Lawyer to Set Up an Income Trust in South Carolina?
No. SCDHHS's Form 905 states, "It is not required to use an attorney, but you may do so if you wish." SCDHHS publishes its own fill-in form, so the core setup is completing it, naming a trustee, and opening the trust's bank account. Families with significant assets, gifts made in the last five years, a second marriage, or property in more than one state commonly bring in a South Carolina-licensed elder-law attorney anyway. This guide is informational only and is not legal advice.
What usually happens
You find the free SCDHHS form, and it looks simple. Then an elder-law attorney quotes $1,000–$2,500 to handle it. So you fill it in yourself, get it signed, and take it to the bank, where the branch has never opened one of these and says no.
Meanwhile the month is running out. In South Carolina, coverage can't start before the month the trust is funded, so a month that slips is another month of private-pay nursing care at $9,034–$9,612.
This applies when the person who needs care has gross monthly income over South Carolina's income cap of $2,982, whether you're their child, their spouse, or a professional helping them.
Free: the questions to ask a South Carolina bank before your first visit
7 questions for a five-minute phone call, so you find out whether a branch knows how to open this account before you make the drive. Emailed now, then 4 short follow-ups over the next 10 days — then we stop.
What SCDHHS's own materials say
SCDHHS's Form 905 states that "It is not required to use an attorney, but you may do so if you wish," and the SC Department on Aging's Medicaid Income Trust fact sheet adds that "An attorney is not needed to establish a Medicaid Income Trust." The form tells families to complete its pages and return them to the Medicaid office, and includes a blank-by-blank completion guide. Execution is more formal than in most states: the settlor's signature and the trustee's signature each require two witnesses, and the Statement of Trustee is notarized by someone other than the witness. The applicant signs if possible; otherwise a power of attorney or conservator may sign on the applicant's behalf.
What the SCDHHS form involves
South Carolina Department of Health and Human Services publishes the trust as a fill-in form: SCDHHS Qualified Income Trust form . South Carolina publishes an official Income Trust Agreement — DHHS Form 905 (January 2026) — the fill-in instrument an applicant completes and returns to the Medicaid office; SCDHHS reviews every completed trust to confirm it meets the legal criteria. The form states it is not required to use an attorney. A completed Schedule A (DHHS Form 3270 ME) listing the income and the trust bank account is required for the trust's validity, and the trust must be funded solely with income — placing any asset in it renders the trust invalid. Eligibility cannot be established before the month the trust is signed, so it should be completed as soon as possible.
Completing it means entering the information it asks for and signing it the way its instructions say. After that come the parts that are banking rather than law: the trustee opens a dedicated account and moves the applicant's income into it each month. See the step-by-step setup for the full sequence.
When families bring in an attorney anyway
The trust itself is one document, but it sits inside a larger Medicaid application. These situations raise questions the trust doesn't answer, and they're where an elder-law attorney's fee usually earns its keep:
- Significant savings or property beyond the applicant's monthly income.
- Gifts or transfers in the last five years, which Medicaid's look-back reviews.
- A spouse still living at home, whose own income and allowances affect the numbers.
- Property or accounts in more than one state.
- An applicant who can't sign for themselves and has no one holding a power of attorney or guardianship. State agencies generally ask whoever signs for the applicant to show that legal authority.
Finding an elder-law attorney in South Carolina
South Carolina Bar — Find a Lawyer (Lawyer Referral Service) is the lawyer referral service for South Carolina. Other resources for South Carolina families: South Carolina Legal Services (sclegal.org) — free civil legal aid for eligible low-income residents; South Carolina Department on Aging — legal assistance for residents 60+ via the Area Agencies on Aging (aging.sc.gov); GetCareSC — SC's Aging & Disability Resource Connection / Area Agencies on Aging service finder (getcaresc.com); National Academy of Elder Law Attorneys (NAELA). The National Academy of Elder Law Attorneys also lists its members by state. For what attorneys typically charge, see what it costs in South Carolina.
With or without an attorney, the bank is the next hurdle
Whoever writes or completes the trust, the trustee still has to open the account, and most branches have never opened one. Free one-pager: the questions to ask before you drive to a branch, emailed now. Then 4 more short emails over the next 10 days — then we stop.