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Chapter: 1600 Assets Program: MSSI, SFP 37

1640.0576.09 Treatment of Qualified Disabled Trusts (MSSI, SFP) After the trust is approved by the Circuit Legal Counsel as meeting the criteria of a qualified trust for the disabled under age 65 or a pooled trust for individuals under age 65, apply the following policies to determine the individual's eligibility for Medicaid benefits:

1. Do not consider the corpus of the exempt trust as an asset to the individual beginning with the month the assets are placed into an executed qualified disabled trust or pooled trust; 2. Do not consider the funding of a qualified disabled or pooled trust as a transfer of assets or income subject to imposition of a penalty period, provided the trust purchases items and services at fair market value for the sole benefit of the disabled individual (refer to 1640.0609.06); 3. Do not count any income deposited into the trust as income to the individual when determining the individual’s eligibility; 4. Do not consider disbursements from the trust to third parties as income to the individual; 5. Do not consider any income earned by the trust which remains in the trust as income to the individual; 6. Count any payments made directly to the individual as income to the individual; 7. Count all income placed into the trust (along with countable income outside the trust) when computing patient responsibility. Standard spousal impoverishment policies apply.

If income is deposited into the trust, the trustee must provide quarterly statements identifying the deposits (and disbursements) made to the trust for each month.

Any funds paid directly to the individual from the trust must be counted as income to the individual. Disbursements not paid to the individual are not counted as income to the individual.

Fax or send a copy of the approved qualified disabled or pooled trust to:

ACS Recovery Services Post Office Box 12188 Tallahassee, Florida 32317-2188 Fax: (844) 845-8352

When you receive inquiries regarding the settlement of remaining funds in the trust after a recipient’s death, tell them to make checks payable to Agency for Health Care Administration and send to the above address. Also advise them to clearly identify the individual by including a note with the individual’s full name and social security number or Medicaid number. If there are further questions, refer callers to ACS Recovery Services (877) 357-3268. 1640.0576.10 Undue Hardship/Trusts Set Up 10/1/93 or Later (MSSI, SFP) If undue hardship exists, only the amount of the trust that is actually made available as income or assets is counted.

Undue hardship exists when application of the trust provision would deprive an individual of food, clothing, shelter or medical care such that his life or health would be endangered. All efforts to access the assets (including assets and income) must be exhausted before this exception applies. All undue hardship decisions must be reviewed and approved by the eligibility specialist. 1640.0576.11 Verification of Trusts (MSSI, SFP) A copy of the trust document must be reviewed carefully to determine the trustee's ability to use the principal. When appropriate, the eligibility specialist should request an official legal interpretation.