Page 68

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 68 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**”

 Trusts

A trust is a legal arrangement involving property and ownership interests. Property held in trust may or may not be considered a resource.

A trust or similar legal device established prior to August 11, 1993 which is not a resource for SSI purposes may affect Medicaid eligibility. Refer to I-1720 Medicaid Qualifying Trusts.

Trusts created on or after August 11, 1993 must first be evaluated under the rules established by the Omnibus Budget Reconciliation Act of 1993 (OBRA 1993) to determine impact on Medicaid eligibility. Refer to I-1730.

Trusts that meet the exception requirements of policy I-1720 are to be evaluated under the following rules of the SSI cash assistance program to determine if they are countable resources for Medicaid eligibility purposes.

Definitions

Trust - a trust is a property interest whereby property is held by an individual (trustee) subject to a fiduciary duty to use the property for the benefit of another (the beneficiary).

Grantor - (also called a settlor or trustor) is a person who creates a trust. An individual may be a grantor if an agent, or other individual legally empowered to act on their behalf (e.g., a legal guardian, person acting under power of attorney or conservator), establishes the trust with funds or property that belong to the individual.

Trustee - a trustee is a person or entity who holds legal title to property for the use or benefit of another.

Trust Beneficiary - a trust beneficiary is a person for whose benefit a trust exists.

Trust Principal - the trust principal is the property placed in trust by the grantor which the trustee holds, subject to the rights of the beneficiary plus any trust earnings paid into the trust and left to accumulate.