Section 16.03.05.872 - EXEMPT TRUSTSA trust, created or funded on or after August 11, 1993, is exempt from trust treatment and not subject to the asset transfer penalty if it meets a condition below.
01.Trust for Disabled Person. To be exempt, a trust for a disabled person must meet all the conditions below.a. The trust contains the assets of a person under age sixty-five (65).b. The person is blind or totally disabled under the Social Security and SSI rules in 20 CFR Part 416.c. The trust is established for the person's benefit by their parent, grandparent, legal guardian, or a court.d. The trust is irrevocable.e. The trust is exempt until the person reaches age sixty-five (65). After the person reaches age sixty-five (65), additions or augmentations are not exempt from trust treatment.f. Upon the person's death, the amount not distributed by the trust must first be paid to the State of Idaho, up to the amount Medicaid has paid on the person's behalf.02.Income Trust. To be exempt, an income trust must meet all the conditions below. a. The trust is established for the sole benefit of a person who would be eligible for Medicaid in long-term care, or eligible for HCBS except for excess income.b. Any income, placed directly into an income trust in the same calendar month in which received by the recipient, is not considered income to the individual for determining long-term care Medicaid eligibility. Money paid into the trust is income for patient liability or participant participation.c. The trust is irrevocable. The trust document may include a clause allowing the trust to be revoked if the participant leaves the nursing facility or HCBS for a reason other than death, and is no longer eligible for Medicaid because of excess income, if Medicaid is reimbursed up to the amount Medicaid has paid on the person's behalf.d. Income transferred to the trust must be used to pay patient liability or participant participation. If income is not used to pay allowable expenses, it is subject to the asset transfer penalty, unless one (1) of the following exceptions applies.i. Benefit of the spouse in Subsection 841.05 of these rules;ii. Transfer from the spouse in Subsection 841.06 of these rules; oriii. Undue hardship in Subsection 841.11 of these rules.e. Upon the person's death, the amount not distributed by the trust must first be paid to the State of Idaho, up to the amount Medicaid has paid on the person's behalf.03.Trust Managed by Non-Profit Association for Disabled Person. To be exempt, a trust managed by non-profit association for a disabled person must meet all the conditions below.a. The trust is established and managed by a nonprofit association. The nonprofit association must not be the participant, their parent, or grandparent.b. The trust contains the assets of a disabled person. The person must be blind or totally disabled under Social Security and SSI rules in 20 CFR Part 416.c. Accounts in the trust are established only for the benefit of disabled persons. An account can be established by the disabled person, their parent, grandparent, legal guardian, or a court. A separate account must be maintained for each beneficiary of the trust. For purposes of investment and management, the trust may pool the funds in the accounts.d. The trust is irrevocable.e. Upon the person's death, the amount not distributed by the trust must first be paid to the State of Idaho, up to the amount Medicaid has paid on the person's behalf.Idaho Admin. Code r. 16.03.05.872