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MS 5060

[2]

E. Any funds in a trust or transferred to a trust and the income produced by that trust to the extent that it is not available to the household is not counted if:

1. The trust is under the control and management of an institution, corporation or organization;

2. The trust is under the control and management of an individual, whether or not a household member, appointed by the court who has court-imposed limitations placed on his/her use of the funds which meet the requirements outlined in this section;

If the trust can be accessed by petitioning the court and funds can be accessed for reasons with no restrictions, the money withdrawn is countable as income in the month received.

3. The funds held in an irrevocable trust are either:

a. Established from the household's own funds, if the trustee uses the funds solely to make investments on behalf of the trust or to pay the educational/medical expenses of any person named by the household creating the trust; b. Established from non-household funds by a non-household member; or c. Currently in an Irrevocable Funeral Trust Agreement with a funeral home.

4. The trust investments do not directly involve or assist any business or corporation under the control or influence of a household member;

5. The trust arrangement will not likely cease during the certification period; and

6. No household member has the power to revoke the trust arrangements or change the name of beneficiary during the certification period.

F. Money received in the form of a nonrecurring lump sum is counted as a resource in the month received and thereafter, unless specifically excluded from consideration as a resource by other federal laws. Nonrecurring lump sums are amounts such as, but not limited to: income tax refunds, or rebates; retroactive lump sum social security, Supplemental Security Income (SSI), public assistance, railroad retirement benefits, Tobacco Settlement Agreement Payments if received in a single payment; or other payments; insurance settlements; lottery or gambling winnings (annuities and lottery or gambling winnings which are paid annually are averaged over 12 months and considered countable income); refunds of security deposits on rental property or utilities.

Tax refunds received are to be excluded as resources for a period of 12 months after receipt.

If the total amount exceeds the allowable resource limitation, send the household form PAFS-2 and give the household 10 calendar days to update

Page 162

Official source

MS 5060

[2]

E. Any funds in a trust or transferred to a trust and the income produced by that trust to the extent that it is not available to the household is not counted if:

1. The trust is under the control and management of an institution, corporation or organization;

If the trust can be accessed by petitioning the court and funds can be accessed for reasons with no restrictions, the money withdrawn is countable as income in the month received.

3. The funds held in an irrevocable trust are either:

4. The trust investments do not directly involve or assist any business or corporation under the control or influence of a household member;

5. The trust arrangement will not likely cease during the certification period; and

6. No household member has the power to revoke the trust arrangements or change the name of beneficiary during the certification period.

Tax refunds received are to be excluded as resources for a period of 12 months after receipt.

If the total amount exceeds the allowable resource limitation, send the household form PAFS-2 and give the household 10 calendar days to update