Source: https://secure.ssa.gov/apps10/poms.nsf/lnx/1601825046
Timestamp: 2018-04-23 23:04:47
Document Index: 621224830

Matched Legal Cases: ['§ 1', '§ 339', '§ 1382', '§ 1', '§ 1', '§ 1', '§ 1']

SSA - POMS: PS 01825.046 - South Dakota - 03/01/2018
Effective Dates: 03/01/2018 - Present Previous | Next
See POMS SI 01120.200(D)(1)(a)-(b). We have reviewed these criteria in the event the Trust is amended to address the above issue.
Here, the Trust documents provide that the Trust accounts are irrevocable. See Third Restated Trust, §§ 1.5, 3.4. South Dakota follows the general principle of trust law that if a grantor is also the sole beneficiary of a trust, the trust is revocable regardless of language in the trust document to the contrary. See Restatement (Second) of Trusts § 339 (1959). But after Medicaid reimbursement, the Trust directs the Trustee to distribute the residue to residual beneficiaries identified by the Trust sub-account holder in the Joinder Agreement. See Joinder Agreement, pp. 5-6. Assuming a residual beneficiary is named in the Joinder agreement, the Trust account is irrevocable. See POMS SI 01120.200(D)(3) (“grantor cannot unilaterally revoke the trust if there is a named ‘residual beneficiary’ in the trust document who would, for example, receive the principal upon the grantor's death or the occurrence of some other specific event.”). In the event that a specific Joinder Agreement does not name any residual beneficiaries, however, the Trust is revocable and should be counted as a resource, since the template Joinder Agreement does not make any reference to heirs in lieu of specifically named residual beneficiaries. See id. (providing that “residual beneficiaries are assumed to be created, absent evidence of a contrary intent, when a grantor names heirs, next of kin, or similar groups to receive the remaining assets in the trust upon the grantor’s death. In such case, the trust is considered to be irrevocable.”).
The purpose of a trust sub-account is to provide for the supplemental needs of a beneficiary, i.e., a person who is disabled as defined in 42 U.S.C. § 1382c(a)(3). Third Restated Trust, §§ 1.1, 1.9, 2.1. The Trust defines supplemental needs as “nonsupport distributions,” which include but are not limited to medical, dental, psychological, and diagnostic work; supplemental nursing care; rehabilitative and occupational therapy; housing in institutional settings; and expenditures for education, recreation, television, telephone and internet services, etc. Id. at § 1.9. The Trust defines grantors as “parent(s) or grandparent(s) of the Beneficiary; a legal conservator of the Beneficiary; or a court.” Id. at § 1.4. PATI maintains a separate sub-account for each Beneficiary. Id. at §§ 1.12, 4.1.
Contains the assets of a disabled individual under age 65; and
Was “established for the benefit of such individual by a parent, grandparent, legal guardian of the individual, or a court . . .”; and
Provides that the state(s) will receive all amounts remaining in the trust upon the death of the individual up to the amount equal to the total medical assistance paid on behalf of the individual under a state(s) Medicaid plan.
By: Dorrelyn K. Dietrich
http://policy.ssa.gov/poms.nsf/lnx/1601825046
PS 01825.046 - South Dakota - 03/01/2018
Rev:03/01/2018