Current through September 24, 2024
A. In the case of
an irrevocable trust, where there are any circumstances under which payment can
be made to or for the benefit of the individual from all or a portion of the
trust, the following rules apply to that portion.
1. Payments from income or from the corpus
made to or for the benefit of the individual are treated as income to the
individual, provided the payment is counted as income under SSI cash assistance
rules.
2. Income received by the
trust which could be paid to or for the benefit of the individual is treated as
a resource available to the individual.
3. The portion of the corpus that could be
paid to or for the benefit of the individual is treated as a resource available
to the individual; and,
4. Payments
from income or from the corpus that are made, but not to or for the benefit of
the individual, are treated as a transfer of assets for less than fair market
value. [Refer to Miss. Admin. Code Part 103, Chapter 7]
B. If no payment can be made to or for the
benefit of the individual from either all of the trust or from some portion of
the trust, treat the trust or the unavailable portion as a transfer of assets.
The value of the trust or the value of the unavailable portion is not an
available resource if it is treated as a transfer of assets. [Refer to Miss.
Admin. Part 103, Chapter 7]
1. The sixty (60)
month look back period for transfer of assets applies. When all or portion of
the corpus or income on the corpus of a trust cannot be paid to the individual,
treat all or any such portion or income as a transfer of assets under OBRA-93
transfer policy.
2. In treating
these portions as a transfer of assets, the date of the transfer is considered
to be either the date the trust was established or, if later, the date on which
payment to the individual was foreclosed.
3. In determining for transfer of assets
purposes the value of the portion of the trust which cannot be paid to the
individual, do not subtract from the value of the trust any payments made, for
whatever purposes, after the date the trust was established or, if later, the
date payment to the individual was foreclosed. The value of the transferred
amount is no less than its value on the date the trust is established or
payment is foreclosed.
4. If the
trustee or the grantor adds funds to that portion of the trust which cannot be
paid to the individual after these dates, the addition of those funds is
considered to be a new transfer of assets, effective on the date the funds are
added to that portion of the trust which cannot be paid to the
individual.
42 CFR §435.601(b)
(Rev 1994); Social Security Act §1902 (r) (2); Omnibus Reconciliation Act
(OBRA-93) of 1993 §13611 (Rev. 1993); Deficit Reduction Act of 2005
§6016 (Rev. 2006).
