Page 192

CODE OF COLORADO REGULATIONS 10 CCR 2505-10 8.100 Medical Services Board

192 c. Definition of the term “for the sole benefit of,” as used in the preceding exceptions to the transfer penalty rules: i). A transfer or a trust is considered to be for the sole benefit of the spouse, blind or disabled child, or a disabled individual if the transfer is arranged in such a way that no individual or entity except the spouse, blind or disabled child, or disabled individual can benefit from the assets transferred in any way, whether at the time of the transfer or at any time in the future. ii). To insure that the asset transferred is for the sole benefit of the spouse, blind or disabled child or disabled individual, the following criteria must be met: 1) The transfer must be accomplished by a written instrument which legally binds the parties to a specified course of action and sets forth: a) The conditions under which the transfer was made, and b) A statement as to whom can benefit from the transfer. 2) The written instrument must provide for the spending of funds or use of the transferred assets for the benefit of the individual on a basis that is actuarially sound based on the life expectancy of the individual. 3) Disability trusts and income trusts, which designate the Colorado Department of Health Care Policy and Financing as the remainder beneficiary up to the amount of Medical Assistance paid on behalf of the individual, are exempt from this requirement. 4) A community spouse to whom a Community Spouse Resource Allowance has been transferred does not have to provide a written document or comply with the requirement