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3. When the a/b is the grantor and beneficiary of an irrevocable trust established on or after April 1, 1994, apply the following rules: a. Countable Resources Count the maximum portion of the trust principal and undistributed proceeds that could be disbursed to the a/b. In determining what is available to be disbursed, DISREGARD: (1) The purpose for which the trust was established, (2) Whether the trustee has discretion, (3) Any exculpatory clause restricting disbursements which affect Medicaid eligibility. (4) Any other restrictions on when disbursements can be made or the use of the distributions. This means that if the terms allow ANY circumstances by which all or a portion of the principal or proceeds can be disbursed to a/b, that portion is considered an available resource to the a/b. EXAMPLE: A trust contains $75,000. The terms stipulate that the trustee can disburse up to $50,000 to the grantor. The $50,000 can be paid to the grantor only in the event he needs, for example, a heart transplant. Count $50,000 in resources because it can be paid under some circumstances, although remote. Or if the terms stipulate $50,000 can be disbursed to the grantor on some date in the future, count $50,000 in resources because there is a circumstance where a disbursement can be made. b. Transfer of Resources Apply transfer of resource policy to any portion of the trust that is not counted in resources for the a/b. In the above example, the $25,000 that cannot be disbursed for any reason is a transfer of assets. Refer to MA-2240, Transfer of Assets policy. 4. When the a/b is the beneficiary of a Special Needs trust (See definitions in XI.C.3. above) established on or after April 1, 1994: a. Countable Resources Do not count the trust principal or undistributed proceeds. b. Transfer of Assets 85