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Chapter: 1600 Assets Program: MSSI, SFP 36

1. the purpose of the trust; 2. whether the trustees have or exercise any discretion under the trust; 3. any restrictions on when or whether distributions may be made from the trust; or 4. any restrictions on the use of distributions from the trust.

For more information on transfer of assets for SSI-Related Medicaid, see passage 1640.0606. 1640.0576.08 Exceptions for Trusts Set Up 10/1/93 or Later (MSSI, SFP) The policies listed above in passage 1640.0576.07 do not apply to the following trusts:

1. Trusts established by a will (see passage 1640.0576.03). 2. Trusts for the disabled under age 65. 3. Pooled trusts for the disabled. 4. Qualified income trusts (see passage 1840.0110).

All special trusts must be forwarded to the Region or Circuit Program Office for review and Circuit Legal Counsel's written approval before the case can be approved, per guidelines in the Appendix-A-22.4, A-22.5 and A-22.6.

The following special trusts may be created on or after October 1, 1993, for disabled individuals if the trust meets the specific criteria indicated below:

Trusts for the disabled under 65: A trust containing the assets of a disabled individual under age 65, if:

1. it was established on or after 10/01/93; and 2. it was established for the benefit of the individual by, a parent, grandparent, the disabled individual himself, legal guardian or a court order; and 3. the trust stipulates the state will receive the balance in the trust upon the death of the individual up to an amount equal to the total medical assistance paid on behalf of the individual.

Pooled trusts for the disabled: A trust containing the assets of an individual who is disabled, if:

1. it was established on or after 10/01/93; 2. the trust is established and managed by a nonprofit association; 3. a separate account is maintained for the beneficiary of the trust but, for purposes of investment and management, the trust pools the accounts; 4. the trust is established solely for the disabled individual by a parent, grandparent, legal guardian, court or the individual himself; and 5. to the extent that amounts remaining in the trust upon the individual's death are not retained by the trust, the trust pays to the state an amount equal to the total amount of medical assistance paid on behalf of the individual.

Both of the above special trusts can only be set up to benefit individuals who meet SSI disability criteria. Trusts for the disabled under 65 can be established only for individuals who are under 65. Pooled trusts for the disabled can be established for individuals of any age.

Disability must be determined for both of the above special trusts via regular policy; that is, the person must receive Social Security disability or SSI benefits or the Department must make an independent determination to show that the individual meets the disability requirement.