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West Virginia Income Maintenance Manual Chapter 5

West Virginia Income Maintenance Manual Page 9 Chapter 5 Assets

TRUST Any arrangement in which a grantor transfers property to a trustee(s) with the intention that it be held, managed, or administered by the trustee(s) for the benefit of the grantor or certain designated individuals (beneficiaries). The trust must be valid under State law and manifested by a valid trust instrument or agreement. A trustee holds a fiduciary responsibility to manage the trust's corpus and income for the benefit of the beneficiaries. • For SSI Medicaid Groups, the term trust also includes any legal instrument or device that is similar to a trust. Legal Instrument or Device Similar to a Trust: Any legal instrument, device, or arrangement that may not be called a trust under State law, but that is similar to a trust. That is, it involves a grantor who transfers property to an individual or entity with the intention that it be held, managed, or administered by the individual or entity for the benefit of the grantor or others. This may include, but is not limited to, escrow accounts, investment accounts, pension funds, and other similar entities managed by an individual or entity with fiduciary obligations. TRUSTEE Person or institution that holds legal title to property for the benefit or use of another. UNCOMPENSATED VALUE The CMV, less any outstanding loans, mortgages, or other encumbrances on the asset, minus the amount of compensation received by the AG. UNDUE HARDSHIP Applies to Medicaid LTC groups only. This condition exists with the application of one or more of the following asset policies: • Excessive home equity; • Transfer to a non-permissible trust; and/or • A transfer of assets penalty results in the denial of payment of LTC services and causes the individual to be deprived of medical care to the extent that the individual’s health or life would be endangered, or his food, clothing, shelter, or other necessities of life are at severe risk. When there has been a transferred asset, in order to meet Undue Hardship requirements, the individual must have exhausted all means, legal and otherwise, to receive CMV for and/or to regain the transferred asset. All means, legal or otherwise, refers to action through the court system and/or the voluntary return or recovery of the asset or item. Undue Hardship does not exist when the denial causes the individual inconvenience or might restrict his lifestyle but would not put him at risk of serious deprivation.