Page 2273

(c) Except as provided under 7 AAC 100.604, if an applicant or recipient is the grantor of an irrevocable trust under 7 AAC 100.600 and the terms of the trust prohibit a portion of that trust from being paid to, or for the benefit of, the applicant or recipient under any circumstances, that portion of the trust is a transfer of an asset for less than fair market value under 7 AAC 100.510. The date of the transfer is the date the trust was established or the date on which payment to, or for the benefit of, the applicant or recipient was foreclosed, whichever is later. An addition to the trust by the applicant or recipient is a new transfer of an asset for less than fair market value if

(1) the trust prohibits payment of that addition to, or for the benefit of, the applicant or recipient; and

(2) the addition occurred after the first transfer to the trust. (d) Except as provided under 7 AAC 100.604, a payment from a trust is income to the applicant or recipient, according to the provisions of this chapter that are applicable to the applicant’s or recipient’s eligibility category, if the payment is

(1) made directly to the applicant or recipient;

(2) made to an individual acting on behalf of the applicant or recipient; or

(3) used to purchase a product or service from which the applicant or recipient receives some direct benefit. (e) If the trust corpus includes assets contributed by more than one beneficiary, this section applies only to that portion of the trust assets actually contributed by the beneficiary who is an applicant or recipient. (Eff. 7/20/2007, Register 183) Statutory Authority: Authority: AS 47.05.010 AS 47.07.020 AS 47.07.040 7 AAC 100.604. Recognized Medicaid trusts. (a) The following three types of recognized Medicaid trusts are exceptions to the general trust requirements in 7 AAC 100.602 for trusts:

(1) a qualifying income trust authorized under 42 U.S.C. 1396p(d)(4)(B) that meets the requirements of 7 AAC 100.610;