Who Can Be the Trustee of a Miller Trust in Texas?
In Texas, 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 HHSC allows. HHSC Appendix XXXVI states the statutory authority for a QIT is silent on who may serve as the trustee, but HHSC recommends that the beneficiary not be a trustee — the beneficiary may lose Medicaid eligibility if the trust requirements are not met. The QIT instrument may provide for successor or co-trustees, waive bond, and incorporate the Texas Trust Act provisions for trustee powers. 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 Texas-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 HHSC 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 HHSC permits: typically the applicant's personal-needs allowance of $75/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 Texas setup is the same — see the step-by-step setup and what to say at the bank.
Common questions
- Does the trustee of a Texas 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 HHSC allows. HHSC Appendix XXXVI states the statutory authority for a QIT is silent on who may serve as the trustee, but HHSC recommends that the beneficiary not be a trustee — the beneficiary may lose Medicaid eligibility if the trust requirements are not met. For advice on your specific situation, consult a Texas-licensed elder-law attorney.