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Title 8: Medicaid Page 51 Iowa Department of Health and Human Services Employees’ Manual Chapter D: Resources Trusts Revised September 13, 2024

Trusts Legal reference: 20 CFR 416.1201, 441 IAC 75.24(249A) Treatment of resources in a trust depends on:  When the trust was established.  Whether the trust was established with the member’s assets or with someone else’s assets.  What use of the trust income and principal is allowed by the terms of the trust.  The member’s role in relation to the trust.  Whether the trust is revocable or irrevocable.  The coverage group under which eligibility is being explored or established when a child is the grantor or beneficiary of the trust. (See Resource Eligibility of Non-MAGI Children later in this chapter and 8-F, Coverage Groups for more information.) A person is considered to have “established” a trust if:  The person’s assets were used to form all or part of the principal of the trust, and  The trust was set up by any of the following: • That person, • That person’s spouse, or • A person, court, or administrative body with legal authority to act in place of, on behalf of, at the direction of, or upon the request of that person or that person’s spouse. “Assets” means all income and resources of the person and the person’s spouse. This includes any income or resources that the person or the person’s spouse is entitled to but does not receive, because of action taken by:  The person or the person’s spouse.  Another person, court, or administrative body acting at the direction or upon the request of the person or the person’s spouse.  Another person, court or administrative body with legal authority to act in place of or on behalf of the person or the person’s spouse. Trusts established with assets not owned by the beneficiary include testamentary trusts (established by a will) and inter vivos trusts (established by one living person to another).