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Medical Services Policy Manual, Section H

H 100 Long TermServices and Supports

If in any month the individual’s income that exceeds the income limit is not placed in the trust, the individual is not eligible for Health Care benefits or vendor payment in that month. The income must be placed into and maintained in a single trust account. If an individual receives income on an irregular basis (such as royalty or farm rental income or lump sum payments such as SSA retroactive benefits) the income must be placed into the trust when it is received. If an individual receives income paid jointly to themselves and another person(s), the facility resident’s share of the income must be separated from the share owned by the other person(s) before depositing the facility resident’s share in the trust account. No income belonging to any other individual may be placed in the income trust of a Health Care recipient. 3. Fees and Other Disbursements When no relatives are available to serve as the trustee, a commercial institution such as a bank can be named as trustee. Commercially reasonable administrative fees that are charged by the commercial institution may be allowed as trustee fees. The fee will be considered commercially reasonable if the fee is consistent with administrative fees charged to other customers for similar services. Trustee fees will not be allowed except in these instances. The bank service charges for maintaining the bank account are allowable fees. 4. Trustee Responsibilities A trustee may serve without bond or supervision of any court. Prior to a distribution from the trust, the trustee must notify the eligibility worker responsible for the case of any fees, income taxes, orother payments that must be made from the trust before these disbursements can be made. The advance notice must be made no later than the month that precedes the month in which the disbursements will be made. After certification of the case, no disbursements of any kind can be made by the trustee until the trustee has been provided a current Notice of Action with the post-eligibility budget completed by the system. ( See MS H-410.) Any disbursements made that are not for the benefit of the recipient, the community spouse, or other dependents as specified on the Notice of Action and in the electronic record will be considered a transfer of resources, and a penalty period may be applied.