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Aged, Blind and Disabled Manual Section: Financial Eligibility Requirements Policy Manual Number: 110.055 Chapter: ABD Trusts

May 1, 2026 Division of TennCare 2 trust, the beneficiary becomes owner of the trust. The terms of the trust will indicate how the trust is to be used or what limits are in place for the use of the funds by the trustee. Trustee: An individual who holds the legal title to funds for the benefit or use of another individual. 3. Accessibility Trusts must be evaluated for accessibility. If a trust is accessible, and verification is received that only a portion of the trust is available to the individual, only the available portion will be considered in the resource determination. If such verification is not received, the full value of the trust will be considered available to each beneficiary. a. Revocable Trust A revocable trust is a trust or similar legal device, which can be modified or terminated by the grantor or someone else according to the terms of the trust. A trust may be considered revocable if proof is provided that it can only be modified or terminated by a court. An irrevocable trust which terminates if some action is taken by the grantor is considered a revocable trust. For revocable trusts created prior to 8/11/1993, the full amount of the trust is a countable resource. Interest which accrues to the account is counted as unearned income. Withdrawals from the trust are not considered income, as they are a conversion of a resource. Revocable trusts created on or after 8/11/1993 which was established by the individual, a spouse, or a person/entity with legal authority to act on behalf of, at the direction of or by request of the individual or spouse, and the trust contains an individual’s assets (assets form part or all of the trust), the following policy applies: i. The principal of the trust is considered an available resource for all TennCare Medicaid categories; ii. Any payments from the trust to or for the benefit of the individual are considered income to the individual in all TennCare Medicaid categories; and iii. Any other payments from the trust for any other purpose must be considered under the Transfer of Assets and Penalty Periods policy (institutionalized TennCare Medicaid categories only). b. Irrevocable Trust An irrevocable trust is a trust or similar device which the grantor cannot revoke or modify in any way or under any circumstances. i. Irrevocable Trusts Created Prior to 8/11/1993 are Excluded as Resources if: 1. The trust is legally irrevocable;