Page 146

DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI RESOURCE ELIGIBILITY 11/18 CHAPTER E PAGE 135 Three types of written irrevocable trusts are excluded as resources Special Needs Trusts Established under Section 1917(d)(4)(A) of the Social Security Act, Pooled Trusts Established under Section 1917(d)(4)(C) of the Social Security Act, and trusts that if counted would result in undue hardship to the individual. Each irrevocable trust must be evaluated to determine if one of the exclusions applies. 67.6.4.1. Special Needs Trusts Established under Section 1917(d)(4)(A) of the Act Although this exception is commonly referred to as the special needs trust exception, the exception applies to any trust meeting the following requirements. The trust must • Contain the assets of an individual under age 65 and who is disabled by SSI standards. o This exception does not apply to a trust established for the benefit of an individual age 65 or older. o If the trust was established for the benefit of a disabled individual prior to the date the individual attained age 65, the exception continues to apply after the individual reaches age 65. • Be established for the benefit of such individual by a parent, grandparent, legal guardian or a court; and o This requirement refers to the individual who physically took action to establish the trust even though the trust was established with the assets of the AG claimant/recipient. o The special-needs trust exception does not apply to a trust established by the individual himself/herself. • Contain specific language that provides that upon the death of the individual, the State will receive all amounts remaining in the trust, up to an amount equal to the total amount of medical assistance paid on behalf of the individual under the State Medicaid plan.