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INCOME TYPE DESCRIPTION

Division of Welfare and Supportive Services E-30039 Medical Assistance Manual TYPES OF EARNED AND UNEARNED INCOME 16 Nov 01 MTL 05/16 TRUST FUNDS

1. Unearned

2. Counted in Financial

3. Counted in Patient Liability

4. Taxable For the MAABD program, all trusts (other than minor blocked trusts) are referred to the Chief of Eligibility and Payments (E&P) for a legal evaluation. The case manager must obtain the trust document with all attachments to send with the request, using Form 6009.

For clients applying for or receiving Medicaid in a MAGI category, do not send trusts for evaluation. Verify if the client is receiving income from the trust, and count the income per the instructions in this section. This includes institutionalized individuals receiving Medicaid as a Childless Adult (CA).

Always refer trusts to the Chief of E&P when an individual receiving Medicaid in a MAGI category is to be converted to MAABD under the Institutional or Home-Based Waiver programs.

Trusts established prior to August 11, 1993 by an individual or the individual’s spouse, under which the individual is the recipient of all or part of any payments from the trust, are called Medicaid Qualifying Trusts (MQTs). MQT assets (income/ resources) are “deemed” available to the client

The following are types of payments from a trust fund: 1. Interest income as it becomes available, if the client has a right to the interest on the principal, whether or not the client is currently receiving it.

2. Payments from the trust which are being made to:

• The client; or • The representative/legal guardian of the client; or • A vendor on behalf of the client.