Medical Assistance for People Who Are Age 65 or Older and People Who Are Blind or Have a Disability

2.3.3.2.7.9.1 Identifying the Type of Trust

The type of trust involved is a critical factor in determining whether the trust assets are available, unavailable, or meet one of the exclusions. Always consider the following factors when determining what type of trust is involved:

When the trust was established
Who established the trust
Whose income or resources were used to fund the trust
Who is the beneficiary of the trust
Whether the trustee has any discretion

Trust Characteristics

See the specific page for information for how these types of trusts are treated. The following information provides general characteristics to help identify what type of trust is involved.

Client-Funded Trust

A Client-Funded Trust has the following characteristics:

It was established on or after August 11, 1993
The trust was not established by will
Funded with the income and/or assets of the Medical Assistance (MA) person and/or the person’s spouse

Medical Assistance Qualifying Trust

A Medical Assistance Qualifying Trust (MQT) has the following characteristics:

It was established before August 11, 1993.
It is funded with the income and/or assets of the MA person and/or the person’s spouse.

Special Needs Trust

A Special Needs Trust has the following characteristics:

It was established on or after August 11, 1993.
The trust was established solely for the benefit of a person with a disability who met Social Security Administration (SSA) disability criteria when the trust was established.
The person with a disability was under age 65 when the trust was established.
It is funded in whole or in part with the income or assets of the person with a disability.
It was not established by will.
Minnesota Department of Human Services (DHS) is named as the remainder beneficiary.

Pooled Trust

A Pooled Trust has the following characteristics:

It was established on or after August 11, 1993.
The trust is managed by a non-profit organization.
The sub-accounts in the trust are established solely for the person with a disability according to SSA disability criteria.
The sub-account is funded in whole or in part with the income or assets of the person with a disability.
It was not established by will.
DHS is named as the remainder beneficiary.

Third Party Established and Funded Trusts

A third party established and funded trust has the following characteristics:

It is funded by a third party grantor during the third party’s life or upon the third party grantor’s death.
The trust does not meet all of the guidelines for a Supplemental Needs Trusts.

Supplemental Needs Trust

A Supplemental Needs Trust has the following characteristics:

A third party grantor funds the trust during the third party’s life or upon the third party grantor’s death.
The lifetime beneficiary was a person with a disability at the time the trust was established
The purpose of the trust is to supplement government benefits the beneficiary receives but not supplant (replace) government benefits.

Zebley Trust

A Zebley Trust has the following characteristics:

It was established on or after 1990.
It is funded with payment made to the person by SSA pursuant to the United States Supreme Court Decision, Sullivan v. Zebley, 493 U.S. 521 (1990).