December 1973 Eligibility Requirements Manual

1025.015.04 Trust Funds and Restricted Accounts

IM-57, May 18, 2020IM-42, March 18, 2019IM-32, March 12, 2013

All trust documents are to be sent as an attachment with a Request for Interpretation of Policy (IM-14) form through the proper supervisory channels for Income Maintenance programs.  Program and Policy staff will review to determine availability to the applicant or participant of the resources held in the trust. Include a copy of the entire original trust and any amendments. Also, include documentation of funding sources or assets used to establish the trust. If the trust is established by an insurance payment or other settlement, include documentation to show settlement proceeds flow through the trust.

As part of the annual review, staff must review trusts, like any other assets, to determine if there has been a change in the trust that affects eligibility. Explore any amendments or changes that have occurred to the trust or in administration of the trust. If changes or amendments have occurred send the original trust documents and amendments or changes as an attachment with a Request for Interpretation of Policy (IM-14) form through the proper supervisory channels for Income Maintenance programs.  Program and Policy staff will review to determine availability of the resources held in the trust.

Trusts may be established by:

  • an individual (except special needs trust),
  • his or her spouse, parents, and/or grandparents
  • individuals acting on the participant’s behalf, or
  • a court

A trust may be considered available to the individual for purposes of determining eligibility for MO HealthNet. How a trust is treated depends on:

  • the type of trust, for example, whether it is revocable or irrevocable, and
  • specific requirements and conditions of the trust.
    • Payments actually made to or for the benefit of the individual may be treated as income to the individual.
    • The trust corpus (or principal) that could be paid to or for the benefit of the individual, but is not, may be treated as available resources.
    • Amounts that could be paid to or for the benefit of the individual, but are paid to someone else, may be considered as transfers of assets for less than fair market value.
    • Amounts in irrevocable trusts that cannot, in any way, be paid to, or for the benefit of the individual may also treated as transfers of assets for less than fair market value.

Trust funds are added to FAMIS from the Select Financial Resource Screen (SELFRES, FMWB) as class LR Liquid Resource. Enter the trust on the Liquid Resource screen (FMW0) as Type TR TRUST/ANNUITIES. If it is an irrevocable trust, enter the MHABD Excl Rsn IT IRREVOCABLE CONTRACT/TRUST.