Page 86

(1) A Special Needs Trust created for an individual under age 65 does not need to be evaluated for a Transfer of Assets unless additions are made to the trust after the beneficiary turns age 65. Any addition to the trust after the individual turns age 65 is evaluated for a transfer of assets. (2) A Special Needs Trust created for an individual after he reaches age 65 must be evaluated for a Transfer of Assets. (3) Any disbursement from a Special Needs Trust that is not for the sole benefit of the individual must be evaluated for a Transfer of Assets. Evaluate disbursements at application and each redetermination. 5. When the a/b is the beneficiary of a Pooled Trust (See definitions in XI.C.4. above) established on or after April 1, 1994: a. Countable Resources Do not count the trust principal or undistributed proceeds. b. Transfer of Assets (1) Creation of or additions to a Pooled Trust made at any age, on or after July 1, 2026, does not need to be evaluated for a Transfer of Assets. NOTE: Transfers or additions to Pooled Trusts made prior to July 1, 2026 for an individual age 65 and older must still be evaluated for a transfer of assets. (2) Any disbursement from a Pooled Trust that is not for the sole benefit of the individual must be evaluated for a Transfer of Assets. Evaluate disbursements at application and each redetermination. XII. LIFE INSURANCE AND ANNUITIES A. Definitions 1. Face value of Life Insurance policy Face Value is the amount of basic death benefit contracted for at the time the life insurance policy is purchased. 2. Cash surrender value (CSV) of Life Insurance policy The cash surrender value of a life insurance policy is a form of equity value that a policy acquires over time. The policy owner can only obtain its CSV by turning in the policy for cancellation before it matures or when the insured 86