MEDICAID QUALIFYING TRUST SR 96-02, 01/96 (FAM-A)

Established Before August 11, 1993 *

A Medicaid Qualifying Trust (MQT) is a trust or similar legal device. A similar legal device includes any arrangements, instruments, or devices that may or may not be called a trust and may or may not qualify under state law as a trust. When it is questionable whether a similar legal device qualifies as an MQT, contact the Medicaid Program Specialist at State Office. Individuals receiving Extended Medical Assistance are not affected by this policy.

If all of the following requirements are met, consider the trust or similar legal device as a Medicaid Qualifying Trust, even if the trust is irrevocable or was established for purposes other than to enable the individual to qualify for medical assistance.

• The trust or similar legal device was established by any of the following:

- individual or individual’s spouse,

- individual’s parent(s) if the individual is a minor,

- individual’s guardian,

- individual’s legal representative, or

- any other person acting on the individual’s behalf.

• The funds or assets used to establish the trust belonged to either the:

- individual, or

- individual’s spouse if the spouse’s own assets are used in the eligibility determination.

• The individual is the beneficiary of all or part of the distributions from the trust.

• The amount of distributions from the trust is determined by one or more trustees. The trustees are allowed to exercise discretion regarding the amount to be distributed to the individual.

If any one of the above requirements is not met, do not consider the trust or similar legal device a MQT. See Inaccessible Resources and Trusts for proper treatment.

*Trusts Established After August 10, 1993 - For treatment of trusts established or augmented after August 10, 1993, see Chapter 400, Adult Assistance Manual.

The maximum distributable amount of the trust counts as a resource. The maximum distributable amount is the amount that could be distributed to the individual, assuming the trustee used full discretion under the terms of the trust. Distributions are considered available whether or not the distributions are actually made or the trustee exercises their authority under the trust. Interest that is not disbursed is carried forward and counted as a resource in the month after the month the interest could have been paid to the individual.

Treatment: Countable Resource for medical assistance-only cases.