Page 1

SNAP 402-3 RESOURCES Trust Funds Supersedes: FS 402-3 (04/01/02) Reference: 7 CFR 273.8 Overview: All trusts must be evaluated for their availability for the household’s support and maintenance. DEFINITIONS: Beneficiary: The beneficiary is the individual designated in the trust instrument as benefitting in some way from the trust. The beneficiary can be the grantor or another individual. Grantor: The grantor is the entity creating the trust. The grantor may be any person, including a court or administrative body, with legal authority to act on behalf of the individual, or any person including a court or administrative body, acting at the direction or request of the individual. Trust: A trust is any arrangement where a grantor transfers property (real or personal) with the intention that it be held, managed, or administered by a trustee(s) for the benefit of the grantor or other beneficiary(ies). Trusts are managed by individuals or entities with fiduciary obligations and may include but are not limited to: 1. Escrow accounts; 2. Investment accounts; 3. Future medical care accounts; and, 4. Other similar arrangements. Trustee: A trustee is any individual(s) or entity (e.g., an insurance company or bank) managing a trust and having fiduciary responsibilities. SUPPORT AGREEMENTS: If any member of the filing unit has a written agreement stating another person, entity, or corporation agrees to support the household or a member of the household (e.g., Masonic agreement or by-laws of a Hutterite Colony), the agreement must be evaluated to determine if it meets the legal definition of a trust. If the agreement is determined to meet the trust definition, it must be evaluated for accessibility. If the trust is considered to be accessible, the value of all the resources held by the trust must be counted in determining the household’s resource eligibility. It is necessary to request verification of all resources held by the trust.