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DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI INCOME SOURCES 07/19 CHAPTER I, PAGE 83

65.1.2. Disbursements Which Are Not Income Disbursements from the trust by the trustee to a third party that result in the individual receiving goods and services are not income. For example, if trust funds are paid to a provider of medical services for care rendered to the individual, the disbursements are not income for AG purposes. Exception: If disbursements are paid to the ALF/AFCH provider, the amount paid is income to the individual. 65.2. Trust Principal Is a Resource If the trust principal is a resource to the individual, disbursements from the trust principal received by the individual are not income, but conversion of a resource.

66. Trust Earnings And Additions Unearned Income/Not Income This section addresses how to determine if income generated by a trust and additions to the trust principal are income to the AG individual. Trust earnings or income are amounts earned by the trust principal. They may take such forms as interest, dividends, royalties, rents, etc. These amounts are unearned income to the person (if any) legally able to use them for personal support and maintenance. 66.1. Trust Principal Is Not a Resource 66.1.1. Trust Earnings Trust earnings are not income to the AG who is the trustee or grantor unless designated as belonging to the trustee or grantor under the terms of the trust; e.g., as fees payable to the trustee or interest payable to the grantor. Trust earnings are not income to the AG applicant or recipient who is a trust beneficiary unless the trust directs, or the trustee makes, payment to the beneficiary. 66.1.2. Additions to Principal