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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 3 2. The beneficiary is not a Financially Responsible Relative (FRR) or one for whom the individual is financially responsible; and 3. The individual does not have access to the funds, unless he is also a beneficiary. Review the terms of an irrevocable account, the principal amount and the income generated by such trust at every redetermination. ii. Irrevocable Trust and Similar Devices Established on or After 8/11/1993: An irrevocable trust or similar device which contains an individual’s own assets, forms all or part of the principal of a trust and is established (other than by will) by the individual or spouse, or by a person/entity with legal authority to act on behalf of or at the direction of the individual or spouse is subject to the policy outlined below. This policy applies to that portion of the trust which includes the assets of the individual regardless of the purpose of the trust, whether the trustees have or exercise any discretion under the trust, or any restrictions on distributions or the use of distributions: 1. Any payments from the trust paid to or for the benefit of the individual for any purpose are considered income to the individual, unless payment is made for medical care or other purposes in which it is not considered income under Supplemental Security Income (SSI) policy; and 2. Income on the corpus (principal) of the trust or any portion of corpus which could be paid to or for the benefit of the individual is considered an available resource to the individual. iii. For Institutionalized Individuals, the Following Additional Policy Requirements Apply: 1. Any other payments from the trust for any other purpose will be considered a transfer of assets for individuals subject to the transfer of assets policy; 2. If any portion of the trust containing the individual’s assets cannot be considered as income or a resource, it is considered a transfer of assets from the date the trust is established or payment to the individual is foreclosed: 3. The look-back period for trust transfers of assets is 60 months if no payment can be made to or for the benefit of the individual, or if payment is made for any other purpose than to or for the benefit of the individual; and 4. The corpus (principal) of the trust is the value of the transferred asset. Any additions to the irrevocable trust in which no payments can be made will be considered a transfer of assets at the point the addition is made. c. Value of an Accessible Trust If a trust is accessible, and verification is received that only a portion of the trust is available to the individual, only that portion will be considered in the resource determination. If such