Rule 67:46:05:33.01 Medicaid income trust.

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67:46:05:33.01. Medicaid income trust. A Medicaid income\r\ntrust is a nontestamentary trust or a similar legal\r\ndevice established after August 10, 1993, for the sole benefit of the\r\nbeneficiary. A Medicaid income trust must meet the following requirements:

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(1) It is composed only of\r\nthe beneficiary's own pension, social security, or other income;

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(2) It requires the\r\ntrustee, without option or discretion, to pay monthly to the beneficiary the\r\namount of income paid into the trust. However, the amount paid to the\r\nbeneficiary may not exceed 300 percent of the maximum SSI standard benefit\r\namount when added to the beneficiary's other monthly income not paid into the\r\ntrust;

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(3) It requires the trustee\r\nto pay monthly to the nursing facility, HCBS, or HCBWS provider the amount of\r\nincome remaining in the trust to reduce the payment amount needed from the\r\ndepartment. However, the trustee may encroach upon income remaining in the\r\ntrust for the direct administration of the trust and for items necessary for\r\nthe beneficiary's health if such items are not covered by medical assistance or\r\nthe long-term care facility; and

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(4) It provides that upon\r\nthe death of the individual and before any other distribution is made from the\r\ntrust, the department must receive all amounts remaining in the trust up to an\r\namount equal to the total medical assistance paid on behalf of the beneficiary\r\nafter September 30, 1993.

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If income placed in the trust exceeds\r\nthe amount paid out of the trust for medical services, the excess is subject to\r\npenalties under the transfer of assets provisions in this chapter.

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Source:\r\n20 SDR 170, effective April 21, 1994; 30 SDR 193, effective June 13, 2004; 31\r\nSDR 107, effective February 1, 2005.

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General\r\nAuthority: SDCL 28-6-1.

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Law\r\nImplemented: SDCL 28-6-1.

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Cross-References:

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SSI standard benefit amount,\r\n§ 67:46:04:13.

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Definition of HCBS,\r\n§ 67:54:04:01.

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Definition of HCBWS,\r\n§ 67:44:03:01.

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