If a participant or individual acting on his/her behalf is the creator (also called “grantor” or “settlor”) or beneficiary of a trust, the look-back period is 60 months prior to application. Transfers involving trusts will be evaluated using criteria from the Omnibus Budget Reconciliation Act of 1993 (OBRA ’93) as referenced in the Income Maintenance Memorandum IM-42, dated June 23, 1994.
All trusts must be sent as an attachment with a request for Interpretation of Policy (IM-14) form through supervisory channels for all Income Maintenance programs. A complete, readable copy of each trust with all amendments and updates MUST be submitted with the IM-14. Policy staff will review documents to determine the availability of the trust’s assets to the applicant/participant and if a transfer of assets penalty applies.
All annuity contracts, including the annuity contract application, must be sent as an attachment with the Request for Interpretation of Policy (IM-14) through the proper supervisory channels for Income Maintenance programs.
Refer to IM Manual section 1040.020.35 Annuities Resulting in a Transfer of Property for policy on annuities.