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4. has disbursements made by one or more trustees who are permitted to exercise discretion with respect to the amount disbursed; and 5. was established prior to 8/11/1993.

The maximum amount that can be distributed if the trustee exercises full authority under the trust terms, less any funds actually disbursed is a countable resource to the Medicaid client. Funds disbursed for any purpose are countable unearned income to the client.

The grantor’s intended use of a MQT must be considered when determining accessibility. If a trust created prior to 8/11/93 states its intended purpose is for education and the beneficiary is not pursuing education, the trust is inaccessible/ excluded for Medicaid purposes as it is not intended for anything except education.

SPECIAL NEEDS TRUST:

A Special Needs Trust is a trust:

1. Established for the sole benefit of a disabled individual (as defined by the Social Security Act) under age 65 by: a. the disabled individual (for SNT trusts established after 12-13-2016); b. a parent; c. a grandparent; d. a legal guardian; or e. the court. 2. Established with assets of the disabled individual under age 65, and 3. If the trust is terminated for any reason, including death of the disabled individual, the State Medicaid Program will receive all amounts remaining in the trust up to the total amount of medical assistance paid on behalf of the individual during his or her lifetime. NOTE: This trust exclusion continues after the individual reaches age 65. However, the trust cannot be added to nor otherwise augmented after the beneficiary reaches age 65.

Funds contained in a Special Needs Trust are excluded as resources. Income of a Special Needs Trust is not counted as income to the disabled individual (beneficiary of the trust) unless actually distributed in the form of cash or vendor payments for food or shelter (see MA 500, “In-kind Income).

POOLED TRUSTS:

Exclude funds contained in a pooled trust. A pooled trust is:

1. Established for a disabled (as defined by the Social Security Act) individual’s sole benefit by: a. the disabled individual (regardless of age); b. a parent; c. a grandparent; d. a legal guardian; or e. the court. 2. Established with disabled individual’s assets 3. Established and managed by a nonprofit association (e.g. PLUK---“People, Let’s Unite for Kids,” in the case of Self-Sufficiency Trusts of Montana); 4. With a separate account maintained for each trust beneficiary, but for purposes of investment and fund management, the trust pools these accounts; and