|
Effective: December 1, 2006 |
|
|
19.25.35.05ar1 - Types of Trusts (Archive) |
Archived: February 1, 2010 |
There are many different types of trusts. This section outlines some that are most frequently evaluated for health care programs.
Miller Trust/Qualifying Income Trust.
This type of trust authorizes the trustee to use full discretion to determine how much is paid out from the trust. If it is irrevocable it must be evaluated for availability.
Medicaid Qualifying Trust (MQT)
The client, client’s spouse or guardian creates this type of trust using the client’s funds.
l They must have been established prior to August 11, 1993. See Trusts Established Before 8/11/93.
l The trustee has full discretion to determine how much is paid out from the trust in a particular period of time.
l The client is named one of the beneficiaries.
Miller Trust/Qualifying Income Trust
This trust is composed of only pension, Social Security and other income to the individual, including accumulated interest in the trust.
Note: These trusts are not recognized in Minnesota.
This type of trust maintains a separate account for each disabled beneficiary of the trust, but, for purposes of investment and management of funds, the trust pools these accounts. May also be known as a (d)(4)(c) trust.
l This type of trust is established and managed by a non-profit association.
l The corpus contains income and assets of the disabled person.
l It is established on or after August 11, 2003.
l It may be established by the disabled person, the disabled person’s parents, legal guardians or court.
l It must contain a provision that upon the death of the disabled person, any remaining portion of the trust equal to the amount of MA that has been paid for the client will revert back to DHS.
l This type of trust meets the criteria of a Special Needs Trust. See Special Needs Trusts.
This type of trust is established for the benefit of a disabled person.
l It is established on or after August 11, 1993.
l It is created by a parent, grandparent, legal guardian or the court.
l It can be revocable or irrevocable.
l The trust corpus includes income and assets of the disabled person, or others if it is for the sole benefit of the disabled person.
l It must contain a provision that upon the death of the disabled person, any remaining portion of the trust equal to the amount of MA that has been paid for the client will revert back to DHS.
l All Special Needs Trusts are also Supplemental Needs Trusts.
l See Supplemental Needs Trusts, Special Needs Trusts, and Trusts Established on or after 8/11/93.
This type of trust is established for the benefit of a disabled person.
l It must have been established on or after July 1, 1992.
l It is funded by someone other than the beneficiary, the beneficiary’s spouse, a third party or anyone else obligated to pay any sum for damages or any other purpose to or for the benefit of the beneficiary under the terms of a settlement agreement or judgment.
l See Supplemental Needs Trusts for more information.
This type of trust gives power to the trustee to make disbursements as necessary for the support of the beneficiary.
This type of trust is created by a will or a revocable living trust, and does not become effective until after the death of the trustor.
This type of trust is established with payments made to a client by SSA under the Sulivan vs. Zebley decision.