Section 16.03.05.871 - TREATMENT OF TRUSTSThis trust treatment rule applies to all Medicaid participants. This rules applies to trusts established with the participant's assets on August 11, 1993, or later, and to amounts placed in trusts on or after August 11, 1993. This rule does not apply to an irrevocable trust if the participant meets the undue hardship exemption in Subsection 841.11 of these rules. Assets transferred to a trust are subject to the asset transfer penalty. This rule does not apply to a trust created with assets other than those of the individual, including a trust established by a will.
01.Revocable Trust. Is treated as listed below. A revocable burial trust is not a trust for the purposes of Subsection 871.01 of this rule.a. The body (corpus) of a revocable trust is a resource.b. Payments from the trust to or for the participant are income.c. Any other payments from the trust are an asset transfer, triggering an asset transfer penalty period.d. Under 42 USC 1396p(e)(5), the home and adjoining property loses its exclusion for eligibility purposes when transferred to a revocable trust, unless the participant or spouse is the sole beneficiary of the trust. The home is excluded again if removed from the trust. The exclusion restarts the month following the month the home was removed from the trust.02.Irrevocable Trust. Is treated as listed below.a. The part of the body of an irrevocable trust, from which corpus or income payments could be made to or for the participant, is a resource.b. Payments made to or for the participant are income.c. Payments from the trust for any other reason are asset transfers, triggering the asset transfer penalty.d. Any part of the trust from which payment cannot be made to, or for the benefit of the participant under any circumstances, is an asset transfer.e. The effective date of the transfer is the date the trust was established, or the date payments to the participant were foreclosed.f. The value of the trust, for calculating the transfer penalty, includes any payments made from that portion of the trust after the date the trust was established, or payments were foreclosed.g. An irrevocable burial trust is not subject to treatment under Subsection 871.02 of this rule, unless funds in the trust can be paid for a purpose other than the participant's funeral and related expenses. The trust can provide that funds not needed for the participant's funeral expenses are available to reimburse Medicaid, or to go to the participant's estate.Idaho Admin. Code r. 16.03.05.871