1500.5.42 Trust Funds

Trust funds and income from trust funds that are inaccessible to the household. To be inaccessible, all of the following rules must be met: During the certification period: the trust arrangement is not likely to end, and no household member has the authority to end the trust arrangement or change the beneficiary.

The trustee handling the trust must be a: Court appointee with court-imposed limits placed on the use of funds, or Institution, court, corporation, or organization not owned by or under the control of a household member. Trust investments must not directly involve or help any business or corporation under the control, direction or influence of a household member. The irrevocable trust must be established from: non-household funds by a non-household member, or the household’s funds, if the trustee uses the funds solely to: make investments on behalf of the trust; or pay the educational expenses of any person named by the household creating the trust; or pay the medical expenses of any person named by the household creating the trust.

Types of trusts include, but are not limited to: Federal Thrift Savings Plans, Section 8439, Title 5, United States Code Student income accounts in a qualified tuition programs under Internal Revenue Code, Sections: 529 (the Vermont Higher Education Investment Plan), or 530 Coverdell Education Savings Account