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Trustee Rule: The trust may provide reasonable compensation for a trustee managing funds. Reasonable compensation is based on the time involved to manage the trust and the prevailing rate of compensation. Evaluate each situation on a case-by-case basis to determine if the compensation is reasonable.

b. The transfer must be in the form of a trust document (or similar legal document) which legally specifies the conditions under which the transfer was made, who can benefit, and the amount of the benefit.

c. The trust (or legal document) must provide that the transferred funds are spent on behalf of the allowable person within their lifetime (except for Special Needs and Pooled Trusts described below).

d. Determine if the beneficiary is expected to live long enough to receive the transferred funds based on their age at the time the trust is created and the disbursement schedule of the funds. Use the Life Expectancy Table to determine the beneficiary's life expectancy at the time of the transfer. (1) If the funds will be spent on the beneficiary in their lifetime, it is an allowable transfer.

(2) If any portion of the funds are not expected to be disbursed to the beneficiary, this is a non-allowable transfer.

4. The transferred assets/income is countable to the intended beneficiary if that person applies for Medicaid (or is part of a budget unit applying for Medicaid). Refer to MA-2230, Financial Resources.

B. Transfers To Special Needs Trusts

Refer to MA-2230 Financial Resources XI. C. Types of Trusts for definitions.

1. Transfers of the a/b’s assets to a Special Needs trust are an allowable transfer:

a. If made prior to the a/b turning age 65, and

b. When the terms of the trust meet all the criteria in MA-2230, Financial Resources, XI.

2. Any transfer made to a Special Needs Trust after the a/b turns age 65 must be evaluated as a Transfer of Assets.

3. A Special Needs Trust may be established by the parent, grandparent, legal guardian, court, or by the disabled individual.

4. The disabled individual must establish the trust on and after December 13, 2016, to be a Special Needs Trust. Prior to the date, the trust will not be considered as a Special Needs Trust.

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(2) If any portion of the funds are not expected to be disbursed to the beneficiary, this is a non-allowable transfer.

B. Transfers To Special Needs Trusts

Refer to MA-2230 Financial Resources XI. C. Types of Trusts for definitions.

1. Transfers of the a/b’s assets to a Special Needs trust are an allowable transfer:

a. If made prior to the a/b turning age 65, and

b. When the terms of the trust meet all the criteria in MA-2230, Financial Resources, XI.

2. Any transfer made to a Special Needs Trust after the a/b turns age 65 must be evaluated as a Transfer of Assets.

3. A Special Needs Trust may be established by the parent, grandparent, legal guardian, court, or by the disabled individual.

4. The disabled individual must establish the trust on and after December 13, 2016, to be a Special Needs Trust. Prior to the date, the trust will not be considered as a Special Needs Trust.