5101:1-40-17 ADC-related medicaid: resources: trusts.

(A) A trust is a right of property held by one party for the benefit of another. The person who holds the legal title to property for the benefit or use of another is the trustee.

(B) The CDHS should not automatically consider a trust unavailable. In some instances the beneficiary may petition the court to have funds released early in order to meet current needs. The applicant/recipient must attempt to make the resource available by consulting a legal aid service or the county prosecutor’s office. If the applicant/recipient is unable to make the resource available or the cost of legal action is prohibitive, the trust is considered unavailable. Unavailability must be reviewed at each reapplication.

(C) If the person who created the trust is the eligible applicant/recipient, the trust is considered a resource if he has the legal ability to dissolve it and to use the money.

(D) If an eligible applicant/recipient is a beneficiary of a trust, the trust is not considered as a resource to him when he cannot convert it to cash. Any payment he receives from the trust is unearned income.

(E) A person who is appointed a trustee generally cannot use any of the funds within the trust for his own benefit. Therefore, an individual may be a trustee of a valuable trust and not be able to receive money from it since he has no access to the funds for his personal use. Under such circumstances, it is not a resource to him. If an individual is acting as a trustee for a trust he created, the trust is a resource.

(F) Rule 5101:1-39-271 of the Administrative Code covering the treatment of medicaid trusts is applicable to all ADC-related medicaid assistance groups.

HISTORY: Eff 2-1-95; 10-31-97 (Emer.); 1-26-98

Rule promulgated under: RC 111.15.

Rule authorized by: RC 5111.012.

Rule amplifies: RC 5111.01

REPLACES RULE 5101:1-3-059

REVIEW DATE: 1/26/03