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DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI RESOURCE ELIGIBILITY 11/18 CHAPTER E PAGE 119 65.1.2. Exculpatory Clause An exculpatory clause is one that attempts to exempt the trust from the applicability of these rules. For example, an exculpatory clause would be one that states, “Section 1613(e) of the Social Security Act does not apply to this trust.” Such a statement has no effect as to whether these rules apply to the trust. 65.1.3. Grantor A grantor (also called a settlor or trustor) is the individual who provides the trust principal (or corpus). Therefore, an individual may be a grantor if an agent, or other individual legally empowered to act on his/her behalf (e.g., a legal guardian, person acting under a power of attorney, or conservator), establishes the trust with funds or property that belong to the individual. Where more than one person provides property to the trust, there may be multiple grantors. 65.1.4. Spendthrift Clause or Spendthrift Trust A spendthrift clause or trust prohibits anticipatory transfer of the beneficiary's interest in the trust income or principal. It means that, for example, if the beneficiary is entitled to $100 a month from the trust, the beneficiary cannot sell his/her right to receive the monthly payments to a third party for a lump sum. Because he does not have the right to sell his future benefits they are not countable as a resource. 65.1.5. Trust Beneficiary A trust beneficiary is a person for whose benefit a trust exists. A beneficiary does not hold legal title to trust property but does have an equitable ownership interest in it. The beneficiary owns the benefits of the trust while the trustee holds the title and duties. A beneficiary generally does not have the power to revoke a trust. However, the trust may be a resource to the beneficiary if he/she has the authority under the trust to direct the use of the trust principal. In such a case, the beneficiary's equitable ownership in the trust principal and his/her ability to use it for support and maintenance means it is a resource. The beneficiary's right to mandatory periodic payments may be a resource equal to the value of the anticipated string of payments unless a spendthrift clause or other language prohibits anticipation of payments.