California Code of Regulations › Title 22 - Social Security › Division 3 - Health Care Services › Subdivision 1 - California Medical Assistance Program › Chapter 2 - Determination of Medi-Cal Eligibility and Share of Cost › Article 9 - PROPERTY › Section 50489.9 - Trusts Other than Those Described in 50489.1 or 50489.5

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Trusts described in subsections (a)(1)
					 through (a)(4) of this section, shall be considered available in accordance
					 with subsection (b) of this section:
(1)
					 Trusts that are not described in Section
					 50489.1 or Section
					 50489.5.
(2) Any trust established prior to April 7,
					 1986, which benefits no one other than a mentally retarded person who resides
					 in an intermediate care facility for the mentally retarded.
(3) A trust established on or after August
					 11, 1993, which meets all of the following conditions:
(A) A trust, or portion of a trust, that
					 contains the assets of an individual or spouse who was both disabled as
					 verified in accordance with Section
					 50167(a)(1) and
					 under the age of 65 when the trust was established and who is currently
					 disabled whether or not he/she is age 65 or over, and
(B) A trust that is established for the
					 benefit of the disabled individual or disabled spouse in subsection (a)(1)(A)
					 of this section by a parent, grandparent, legal guardian of the individual, or
					 a court, and where
(C) The State
					 receives all remaining funds in the trust, or respective portion of the trust,
					 upon the death of the individual or spouse or upon termination of the trust up
					 to an amount equal to the total medical assistance paid on behalf of that
					 individual by the Medi-Cal program. A trust, or respective portion of the
					 trust, will still be considered for the benefit of the individual or spouse if
					 the trust permits funds to be used for other purposes when the trust's terms
					 permit such use only after payment of the State's interest pursuant to this
					 subsection.
(4) A trust
					 established on or after August 11, 1993, which meets all the conditions listed
					 in subsections (a)(4)(A) through (a)(4)(F) of this section:
(A) the trust contains the assets of the
					 individual or spouse who is disabled as verified in accordance with Section
					 50167(a)(1),
					 and
(B) the trust is established
					 and managed by a nonprofit association, and
(C) a separate account is maintained for each
					 trust beneficiary, but for purposes of investment and management of funds, the
					 trust pools these accounts, and
(D)
					 the accounts in the trust are established, except for purposes of subsection
					 (a)(4)(E) of this section, solely for the benefit of the disabled individual or
					 disabled spouse, as defined in subsection (a)(4)(F) of this section, by the
					 disabled individual or disabled spouse, his or her parents, his or her
					 grandparents, or the legal guardian of that individual, or by a court,
					 and
(E) the State receives, upon
					 the death of the disabled individual or disabled spouse, all funds remaining in
					 the individual's account, up to an amount equal to the total amount of medical
					 assistance paid on behalf of that individual by the Medi-Cal program. The State
					 shall receive this amount only to the extent that funds remain in that
					 individual's account and are not retained by the trust to cover management and
					 investment fees associated with that account.
(F) In determining whether an account may be
					 considered solely for the benefit of the disabled individual or disabled
					 spouse, both subsections (a)(4)(F)(1) and (a)(4)(F)(2) of this section shall
					 apply.
(1) Except in accordance with
					 subsection (a)(4)(E) of this section, the account funds must benefit no one
					 other than the disabled individual or disabled spouse for whose benefit the
					 account was established before the State's interest has been satisfied pursuant
					 to subsection (a)(4)(E) of this section.
(2) If the trust permits funds to be used for
					 any purpose other than for the sole benefit of the disabled individual or
					 disabled spouse for whose benefit the trust or account was established, before
					 the State's interest has been satisfied pursuant to subsection (a)(4)(E) of
					 this section, the account will not be considered solely for the benefit of that
					 individual or spouse. Such accounts shall be treated pursuant to Section
					 50489.5. An account will still be
					 considered for the sole benefit of the individual or spouse if the trust
					 permits funds to be used for other purposes when the trust's terms permit such
					 use only after payment of the State's interest pursuant to subsection (a)(4)(E)
					 of this section.