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West Virginia Income Maintenance Manual Chapter 5

West Virginia Income Maintenance Manual Page 56 Chapter 5 Assets

• The individual pays the agreed-upon amount to the funeral director in the form of a direct cash payment, purchase, or transfer of a life insurance policy or annuity that is assigned to the funeral director. • The funeral director, in turn, places the pre-need payment or device into a trust or escrow account that the funeral director establishes himself. If the client establishes the trust or other device himself, the amount may be considered a transfer of resources. See Chapter 24 and Section 5.7. 4. A trust established with a settlement or funds received from the following: • Factor VIII or IX Concentrate Blood Products Litigation, MDL 986, No. 93-C- 7452, ND of Illinois • Ricky Ray Fund • Walker v. Bayer Settlement 5.5.46.D Revocable Trusts Once the Worker determines that the trust was not established by a will and is not determined to be an excluded trust, the following rules apply: • The corpus of the trust is considered an available asset. • Payments from the trust to the client or for his benefit are counted as income. 5.5.46.E Irrevocable Trusts Once the Worker determines the trust was not established by a will and does not meet one of the exceptions above, the following rules apply: • If there are any circumstances under which payments from the trust could be made to the client or for his benefit, that portion of the corpus, or the interest, is an asset. • If payments are made from the available corpus, or interest, to the client or for his benefit, the amount is treated as income. 5.5.46.E.1 Payment for the Client’s Benefit Throughout the Irrevocable Trusts section "payments made on behalf of the client" or "for his benefit" means payments of any kind to another entity, such that the client derives some benefit