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MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL a. Payments from income or from the corpus (principal) made to or for the benefit of the individual are treated as income; b. Income from the corpus (principal) of the trust which could be paid to or for the benefit of the individual are treated as an available resource; c. The portion of the corpus (principal) that could be paid to or for the benefit of the individual is treated as an available resource; d. Payments from income or the corpus (principal) not paid to or for the benefit of the individual are treated as a transfer of assets for less than fair market value and a "look­ back" period of 60 months applies. F-520.3 Irrevocable Trust - Payment Cannot Be Made to Individual When all or a portion of the corpus (principle) or income of the trust cannot be paid to or for the benefit of the individual, treat all or any such portion or income as a transfer of assets for less than fair market value and a "look-back" period of 60 months applies. F-520.4 Special Needs Trust The trust must be irrevocable and must contain the assets of an individual under age 65 who is disabled and which trust is established for the sole benefit of the disabled individual by the disabled individual, a parent, grandparent, legal guardian of the disabled individual, or a court (effective with special needs trusts established on or after 12/13/2016), or prior to 12/13/2016 by a parent, grandparent, legal guardian of the disabled individual, or a court. In addition to the assets of the individual, the trust may also contain the assets of individuals other than the disabled individual. The trust must specify that upon the death of the disabled individual, the state receive all amounts remaining in the trust up to an amount equal to the total amount of medical assistance paid on behalf of the disabled individual. If the trust meets all the above requirements, the corpus (principle) of the trust is not considered available when determining resource eligibility. However, any liquid funds, e.g., cash paid out of the trust that are used for items other than the supplemental or special needs of the individual, are considered income in the month paid out for financial eligibility and patient liability. Exception: Administrative and trust fees are allowed as deductions without counting as income or a transfer in the month paid out. Any non-liquid resource, e.g., re-title of home from the trust to an individual, removed from the trust may convert an exempt resource to a countable resource in the month it is removed from the trust. Any non- liquid resource removed from the trust not for the supplemental or special needs of the individual are considered assets disposed of for less than fair market value and a transfer of assets penalty will apply. If the trust is used to purchase a residence for a beneficiary, the fair market rental value for others living in the home will be considered income each month that others live in the home, unless the trust is paid fair market rental value for such other persons. The trustee must immediately inform the Division of Welfare and Supportive Services (DWSS) of any F-520.2 TREATMENT OF TRUSTS Irrivocable Trust-Payment Can be Made to Individual Division of Welfare and Supportive Services Medical Assistance Manual 25 Mar MTL 03/25