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Medical Services Policy Manual, Section H

H-300 Transfer of Resources

H 304 Transfers to Trusts

3) A person, including any court or administrative body, with legal authority to act in place of or on behalf of the individual or the individual’s spouse; or 4) A person, including any court or administrative body, acting at the direction or upon the request of the individual or the individual’s spouse. b. If the corpus of a trust includes resources of an individual and resources of any other person(s), the provisions of this section shall apply to the portion of the trust attributable to the resources of the individual. c. With the exception of a trust as described below in subsection No. 4 (Trusts Not Considered an Available Resource), this section (1a & b) shall apply without regard to: 1) The purpose for which a trust is established; 2) Whether the trustees have or exercise any discretion under the trust; 3) Any restrictions on when orwhether distributions may be made from the trust; or 4) Any restrictions on the use of distributions from the trust.

2. Consideration of Revocable Trusts a. The corpus of the trust is considered available to the individual; b. Payments from the trust to or for the benefit of the individual are considered income to the individual; and c. Any other payments from the trust (e.g., to another individual) will be treated as a transfer of resources. 3. Consideration of Irrevocable Trusts a. If the trust permits payments, under any circumstances, to or for the benefit of the individual, the portion of the corpus from which payment to the individual could be made (or the income on the corpus from which payment to the individual could be made) shall be considered a resource available to the individual; and payments actually made from that portion of the corpus shall be considered as follows: 1) Payments to or for the benefit of the individual shall be considered income of the individual; and