2-009.07A6f(1) Trusts Established Before August 11, 1993

For a Medicaid-qualifying trust established before August 11, 1993, the maximum amount that could have been distributed from either the income or principal is considered an available resource.

A Medicaid-qualifying trust is a trust or similar legal device that was established by a client (or his or her spouse) under which:

1. The client is the beneficiary of all or part of the payments from the trust; and

2. The amount of the distribution is determined by one or more trustees who are permitted to exercise any discretion with respect to the amount to be distributed to the individual and the distributable amount from a Medicaid-qualifying trust has no use limitation.

A trust that was established by a client's guardian or legal representative, acting on the client's behalf, falls under the definition of a Medicaid-qualifying trust. If a client is not legally competent, for example, a trust established by his/her legal guardian (including a parent) using the client's assets can be treated as having been established by the client, since the client could not establish the trust for himself/herself.

{5/8/05}