5600 - Trust Funds and Annuities

For purposes of this section a trust shall be defined as any legal instrument or device that is similar to a trust. An annuity is a contract or device which conveys a right to receive a fixed, periodic source of income for a specified period of time.

Each trust must be reviewed to determine the terms and conditions of the instrument. A full copy of each reported trust must be obtained from the applicant/recipient. Any pertinent information supporting either the establishment, funding mechanism or current value must also be obtained. The material is then forwarded to EES Central Office staff for review and a decision regarding the status of the trust or annuity will be communicated to eligibility staff.

 

5610 Trust Funds (Cash (except GA) and Food Assistance Provisions) - Any fund in a trust or transferred to a trust, and the income produced by that trust to the extent it is not available to the client, shall be considered inaccessible if:

 

  1. The trust arrangement is not likely to cease and no client has the power to revoke the trust arrangement or change the name of the beneficiary;
     

  2. The trustee administering the funds is either:
     

    1. A court, or an institution, corporation, or organization which is not under the direction of or ownership of any client; or
       

    2. An individual appointed by the court who has court-imposed limitations placed on his/her use of the funds which meet the requirements of this paragraph;
       

  3. Trust investments made on behalf of the trust do not directly involve or assist any business or corporation under the control, direction, or influence of a client; and
     

  4. The funds held in irrevocable trust are either:
     

    1. Established from the client's own funds, if the trustee uses the funds solely to make investments on behalf of the trust or to pay the educational or medical expenses of any person named by the client creating the trust; or
       

    2. Established from funds not owned by the client by someone other than the client.
       

    NOTE: ARCare Trusts and supplemental needs/care trusts pursuant to 42 U.S.C. 1396p(d)(4)(a) or 1396p(d)(4)(c) meet the above criteria and are exempt as a resource. These trusts do not need to be submitted to EES Central Office for TAF or food assistance review.

 

5611 Revocable Trust Exempt as Income and Resource - A revocable trust established as an Individual Development Account (IDA) for a TAF recipient or a participant in the Assets for Independence Demonstration Program (AFIA). See 6410 for the guidelines of an allowable IDA.