Current through Register Vol. 24-18, September 15, 2024
(1) This section
governs irrevocable self-settled trusts established on or after August 11,
1993, that do not meet the rules under either WAC 182-516-0120 or
182-516-0125.
(2) A trust
established on or after August 1, 2003, is a self-settled trust if:
(a) The assets of the trust are at least
partially from the beneficiary or the beneficiary's spouse, or would have been
owned by the beneficiary or the beneficiary's spouse unless diverted by the
beneficiary, the beneficiary's spouse, the court, or someone acting on behalf
of the beneficiary or the beneficiary's spouse;
(b) The trust is not established by will;
and
(c) The trust was established
by:
(i) The beneficiary or that beneficiary's
spouse;
(ii) A person, including a
court or administrative body, with legal authority to act in place or on behalf
of the beneficiary or that beneficiary's spouse; or
(iii) A person, including a court or
administrative body, acting at the direction or upon the request of the
beneficiary or that beneficiary's spouse.
(3) A trust established from August 11, 1993,
to July 31, 2003, is a self-settled trust if:
(a) The assets of the trust are at least
partially from the beneficiary, or would have been owned by the beneficiary
unless diverted by the beneficiary, the court, or someone acting on behalf of
the beneficiary;
(b) The trust is
not established by will; and
(c)
The trust was established by:
(i) The
beneficiary;
(ii) A person,
including a court or administrative body, with legal authority to act in place
or on behalf of the beneficiary; or
(iii) A person, including a court or
administrative body, acting at the direction or upon the request of the
beneficiary.
(4) This section applies only to the assets
contributed to a trust:
(a) Under subsection
(2) of this section, by either the beneficiary or that beneficiary's spouse;
or
(b) Under subsection (3) of this
section, by the beneficiary.
(5) The medicaid agency or the agency's
designee applies the rules of this section without regard to:
(a) The purpose for establishing a
trust;
(b) Whether the trustees
have or may exercise any discretion under the terms of the trust;
(c) Restrictions on when or whether
distributions may be made from the trust; and
(d) Restrictions on the use of distributions
from the trust.
(6)
Treatment of payments or benefits from trusts established under this section.
(a) Subject to subsection (7) of this
section, if there are any circumstances under which payment or benefit from the
trust could be made to or for the benefit of the beneficiary, the portion of
the principal from which, or the income on the principal from which, payment to
the beneficiary could be made is an available resource to the beneficiary, and
the payment or benefit from that portion:
(i)
Is unearned income when payment or benefit is to or for the benefit of the
beneficiary; and
(ii) Is an
uncompensated asset transfer, if payment or benefit is for any other
purpose.
(b) If there are
no circumstances under which any payment or any benefit from the trust could be
made to or for the benefit of the beneficiary, the part of the trust or income
of that trust, from which payment or benefit cannot be made, is an
uncompensated asset transfer.
(7) For the purposes of subsection (6)(a) of
this section, "available resource" means a resource after the resource
exclusions under chapter 182-512 WAC are applied; however, for an
institutionalized individual, the resource exclusion for the home under WAC
182-512-0350
does not apply.
(8) If unearned
income under subsection (6)(a)(i) of this section was from an available
resource under subsection (6)(a) of this section, then the value of the
available resource will be reduced by the amount of unearned income under
subsection (6)(a)(i) of this section.
