<html> <head> <title>Rule 67:46:05:32.02 Consideration of revocable and irrevocable trusts.</title> <META NAME="Keywords" Content="Administrative Rules 67:46:05:32.02"> <META NAME="Description" Content="Administrative Rules 67:46:05:32.02 Consideration of revocable and irrevocable trusts."> <meta name=Generator content="Microsoft Office HTML Filter 2.0"> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Originator content="Microsoft Word 10"> <style> <!-- --> </style> </head> <body lang=EN-US> <div> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>67:46:05:32.02.&nbsp;&nbsp;Consideration of revocable and irrevocable trusts.</b> A trust or similar legal device established under the provisions of §&nbsp;67:46:05:32.01 is subject to this section regardless of the purpose for which it is established, whether the trustee has or exercises any discretion under the trust, whether there are restrictions on when or whether distribution may be made from the trust, or whether there are restrictions on the use of any distribution from the trust.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the trust is a revocable trust, the principal of the trust is considered a resource which is available to the individual. A payment from the trust to or for the benefit of the individual is considered income to the individual. Except for trustee and legal fees, any other payment made from the trust is considered a resource which was disposed of by the individual to establish eligibility for Medicaid.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the trust is an irrevocable trust and contains any provisions under which payment from the trust may be made to or for the benefit of the individual, the entire portion of the principal or income on the principal from which payment to the individual could be made is considered a resource and any payment from that portion of the principal or income to or for the benefit of the individual is considered income to the individual. Except for trustee and legal fees, any other payment made from the trust is considered a resource which was disposed of by the individual to establish eligibility for Medicaid. The department considers any portion of the principal or income on the principal from which a payment to the individual or for the benefit of the individual may not be made under any circumstances to be a resource which was transferred for purposes of establishing eligibility for Medicaid.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 21 SDR 162, effective March 23, 1995.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=28-6-1">28-6-1.</A></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=28-6-1">28-6-1.</A></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Cross-Reference:</b> Trusts excepted from consideration as a resource, §&nbsp;67:46:05:32.03.</p> </div> </body> </html>