Page 70

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 70 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**” assumes that the trustee has the best interests of the beneficiary in mind.

Unless the trust specifically states the amounts and time frames for disbursement, the amounts and time frames for distribution decided by the trustee shall not be questioned.

Trustee discretion in the use of trust funds should not be misconstrued to mean that the principal is available or unavailable to the applicant/beneficiary.

Do not count the trust as a resource if the trust beneficiary's access is restricted (i.e., only the trustee or court can invade the principal), even if:

• It can be revoked by someone other than the trust beneficiary, or

• It provides a regular specified payment from the principal to the beneficiary for their use, or

• It designates a representative payee or legal guardian as trustee.

Note: Count as income all payments made to the trust beneficiary from a restricted trust.

Applicant/Beneficiary as Settlor

Count the trust as a resource if the applicant/beneficiary is the settlor (created the trust) and:

• Has the right to revoke it, and

• Can use the funds for their own benefit.

Consider penalties under the transfer of resource policy (refer to I-1670 Transfer of Resources For Less Than Fair Market Value) if the applicant/beneficiary:

• Created the trust,

• Does not have the right to revoke it, and