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MISSISSIPPI DIVISION OF MEDICAID HOME & COMMUNITY BASED SERVICES WAIVER INCOME TRUST – HELP SHEET HCBS Income Trust Help Sheet, Revised June 2020 Page 3

13. An HCBS Income Trust is not allowed on a temporary or intermittent basis except in instances when recurring excess monthly income will be reduced at a future date. In such a situation, an Income Trust will be allowed until such time as the excess income is reduced and an Income Trust is no longer required to allow eligibility.

• Income received less often than monthly does not qualify as recurring excess monthly income that allows the use of an Income Trust.

• Irregular or infrequent income must be converted into a monthly income before allowing an Income Trust to be established.

Termination of an Income Trust: 14. An Income Trust terminates at the individual’s death, when Medicaid eligibility terminates or when the trust is no longer necessary or the trust is otherwise terminated. The need to terminate an Income Trust prior to the individual’s death may occur in the following situations:

• The individual’s recurring monthly income decreases to an amount below the Medicaid institutional income limit, meaning an Income Trust is no longer needed in order for the individual to qualify for Medicaid based on income.

• Medicaid state or federal policy changes regarding how certain income must be counted resulting in the disallowance or the need for an Income Trust.

• The individual is discharged from the HCBS waiver program resulting in the disallowance of an Income Trust in order to qualify for Medicaid.

At the time an Income Trust is terminated, all amounts remaining in the Income Trust must be paid to the Division of Medicaid up to an amount equal to the total medical assistance paid by the Division of Medicaid on behalf of the individual that has not previously been paid to the Division of Medicaid. The Trustee will be notified in writing of any remaining trust funds that are due and payable to the Division of Medicaid.

An Income Trust is a very simple trust that accomplishes the specific goal of receiving income and disbursing it for the sole purpose of allowing an individual in a nursing facility with income in excess of Medicaid income limits to qualify for Medicaid. It is not intended to be a complex fiduciary trust. For more information, attorneys drafting an Income Trust may contact the Division of Medicaid’s Legal Unit at (601) 359-6050.