All Medicaid Programs |
Obsolete Policy |
If a client has a trust, the client must provide a periodic financial account review. This applies to clients with a Special Needs trust or a Pooled Trust, as well as any client who has a trust and is still eligible for Medicaid. The accounting must show:
income the trust has received,
payments made with trust funds,
who received payments, and
the purpose of such payments (goods or services purchased and how they benefited the disabled individual.)
Verification of assets purchased with trust funds and an inventory of trust assets may also be necessary to establish ownership and value.
The client or her representative must provide the accounting upon request of the eligibility worker, but no less frequently than the mandatory review. If a change to the trust is reported, review the trust to determine continued eligibility. The accounting must be detailed enough for the eligibility worker to determine whether any payments count as income, are for goods or services that benefit the client, or are possible transfers of assets. The eligibility worker may require additional information or verifications.
An accounting should be sent to the Medicaid agency when there is a change of trustee. When a trustee resigns and a new trustee is appointed, the exiting trustee completes an accounting for the new trustee. The trustee should send this trust accounting to the client or her representative and the client or representative needs to provide this accounting to the Medicaid agency. The purpose of this is to complete all work the exiting trustee did so that the new trustee only has to account for transactions from the point in time the new trustee takes over.
Some payments from the trust may count as income. Other payments could result in a penalty period due to transferring assets for less than fair market value.
Payments made to or for the benefit of the client count as income the month received. This includes payments for the client's use made to the client's spouse, parent, guardian, personal representative or other responsible person who helps the client.
Payments made to a third party that provides a benefit to the client count as income only if the goods or services would be counted as income under the applicable Medicaid policy. For example, if the trust pays the client's landlord for the monthly rent, the payment counts as income under aged, blind and disabled Medicaid subject to the PMV rules. (403-11)
Payments for medical services, medical equipment, or personal assistive devices are never counted as income.
Payments made to anyone other than the client that is not for goods or services that benefit the client are treated as a transfer for less than fair market value. All transfers can cause the client to be ineligible for nursing home and long-term care services. (371)
Failure to provide an accounting as requested by the eligibility worker will result in case closure.