Page 67

Title 8: Medicaid Page 63 Iowa Department of Health and Human Services Employees’ Manual Chapter D: Resources Trusts Revised September 13, 2024 Trusts Established with Assets Not Owned… In both cases, any payments from either trust principal or trust income that are made to the applicant or member or made for the applicant’s or member’s basic needs are countable income in the period of intended use and a resource thereafter. (EXCEPTION: Do not count resources for MAGI-related Medicaid.) If payments are made to vendors for basic needs, see policies in 8-E, Non-MAGI- Related In-Kind Income or In-Kind Unearned Income. Medicaid Qualifying Trusts Legal reference: 441 IAC 75 (Rules in Process), P. L. 99-272, P. L. 99-509, section 9435(c) A Medicaid qualifying trust is a trust or similar legal device which:  Was established on or before August 10, 1993.  Is not established by a last will and testament.  Is established by an applicant or member, the applicant’s or member’s spouse, or someone acting for them.  Is established from funds belonging to the applicant or member or the spouse.  Allows or names the applicant or member to be the beneficiary of payments from the trust.  Has one or more trustees determine the distribution of payments.  Permits the trustees to exercise discretion with respect to the distribution of trust principal and income to the beneficiary. When someone with power of attorney, a conservator, a guardian, a lawyer, or a court acts on behalf of the applicant or member to set up the trust, treat it as though the applicant or member set up the trust. The amount of income and principal from a Medicaid qualifying trust that is considered available is the maximum amount that may be permitted under the terms of the trust, assuming the trustees exercise full discretion in the distribution of the income and principal. EXCEPTION: Trusts or initial trust decrees established before April 7, 1986, solely for the benefit of a person with an intellectual disability who lives in an intermediate care facility for persons with an intellectual disability are exempt.