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1151 Chapter 7:Worker guides • Section 7: OSIPM worker guides (07/2026) Medicaid-specific trusts Under 65 disability trusts This trust is set up by a parent, grandparent, guardian or conservator or the court system. Also, for trusts established on or after December 13, 2016, a competent, adult, individual may create the trust. The trust is set up for a person who meets the SSI disability criteria. It must have been created and funded before the person was 65. There must be a provision in the trust that any money remaining after the death of the individual will be returned to the state. You would not count this type of trust as a resource to the individual. Send a Property Referral form (MSC 647) to EAU so they can monitor any funds remaining in the trust when the individual dies. 461-145-0540(9). Note: The trust must be funded using the financial group’s assets. Pooled trusts A “pooled trust” is an umbrella trust that many people can join. A Pooled Trust must be established and managed by a non-profit association (e.g., The ARC of Oregon). For our purposes, the individual, a parent, grandparent, legal guardian or the court system can join the pooled trust on behalf of the individual. The trust is set up for a person who meets the SSI disability criteria and the trust must have been created and funded before the person was 65. There must be a provision in the trust that any money remaining after the death of the individual will be returned to the state. You would not count this type of trust as a resource to the individual. Send a Property Referral form (MSC 647) to EAU so they can monitor any funds remaining in the trust when the individual dies. 461-145-0540(10(b). Note: You are unlikely to see the full trust. What you will see is the “joinder agreement.” Income cap trust These trusts are for the benefit of an individual whose income is above 300% of the SSI standard. It must contain all of the individual’s income. There must be a provision in the trust that any money remaining after the death of the individual will be returned to the state. You would not count this type of trust as a resource to the individual. Send a 647 Property Referral form to EAU so they can monitor any funds remaining in the trust when the individual dies. According to federal guidelines, an individual is able to use an ICT to meet the income limit because the individual has given up direct access to and control over that income (State Medicaid Manual 3259.7). For this reason, the individual should not be the trustee of their ICT. If there is no one able to be trustee (family, friends, money management, or other community resources) contact the APD Medicaid policy unit for guidance..

The income deposited in the trust may only be distributed as outlined in OAR 461-145-0540(9)(c). See Chapter 2, Section 10 for more information about funding the trust. The following is what is currently allowed as distributions: (a) An earned income deduction of $65 from earned income. (b) The deductions under the plan for self-support as allowed by OAR 461-145-0405. (c) Personal-needs allowance and applicable room and board standard. If your individual moves from a nursing facility to CBC be sure to adjust the personal needs allowance from the PIF standard to the OSIP maintenance standard. (d) Reasonable administrative costs, not to exceed a total of $50 per month (see the rule for further details). (e) Community spouse and family monthly maintenance needs allowance (and you will have determined what