Who Can Be the Trustee of a Miller Trust in South Carolina?
In South Carolina, 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 SCDHHS allows. Per DHHS Form 905, the applicant/beneficiary cannot serve as their own trustee — a separate trustee must be appointed (a family member, an attorney-in-fact under a Durable Power of Attorney, a guardian or conservator, or another willing person). The trustee is responsible for having the income deposited, withdrawing only allowed deductions, and accounting for every dollar in and out; the Statement of Trustee must be signed, witnessed, and notarized, and the trustee is personally liable for any misuse of trust funds. No bond is required. A successor trustee is named by agreement of the beneficiary (or representative) and SCDHHS, or by the probate court if they cannot agree. South Carolina allows the income to flow into the trust account by direct deposit, by depositing the check, or by transfer from another account — each month the income must flow through the account for any month coverage is sought. A $10/month maintenance reserve may be retained for bank charges, a tax return, or trustee compensation if no one will serve without pay (SCDHHS may authorize more). 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 South Carolina-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 SCDHHS 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 SCDHHS permits: typically the applicant's personal-needs allowance of $60/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 South Carolina setup is the same — see the step-by-step setup and what to say at the bank.
Common questions
- Does the trustee of a South Carolina 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 SCDHHS allows. Per DHHS Form 905, the applicant/beneficiary cannot serve as their own trustee — a separate trustee must be appointed (a family member, an attorney-in-fact under a Durable Power of Attorney, a guardian or conservator, or another willing person). For advice on your specific situation, consult a South Carolina-licensed elder-law attorney.