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 - Trusts -General

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 Property and income held in trust for the benefit of an individual or
					 individual's spouse shall be treated in accordance with Sections
					 50489 through Section
					 50489.9. These sections shall
					 supersede any other section(s) of this article.
(b) For purposes of sections
					 50489 through
					 50489.9, the following definitions
					 apply:
(1) "Annuitant" means a person who has
					 the right to receive payments from an annuity. The annuity shall be annuitized
					 based upon the life expectancy of the annuitant.
(2) "Annuitized" means that an annuity is
					 paying a fixed, equal amount to the annuitant on a periodic basis. Payments
					 shall be no less frequent than monthly over a number of years equal to or less
					 than the annuitant's life expectancy as indicated in life expectancy tables
					 provided by the Secretary for the Department of Health and Human Services,
					 contained in Section
					 3258.9 (Revision 64), Part 3 of
					 the Health Care Financing Administration's State Medicaid Manual and titled
					 "Life Expectancy Table--Males and Life Expectancy Table--Females". The final
					 annuity payment may be for an amount less than the previously fixed annuity
					 payments in order to fully exhaust benefits under the annuity. An annuity shall
					 be considered annuitized even though it may provide an annual cost of living
					 adjustment equal to or less than 5%.
(3) "Annuity" means a contract to make
					 periodic payments of a fixed or variable sum paid to an annuitant which are
					 payable unconditionally. Annuity payments may continue for a fixed period of
					 time or for as long as an annuitant lives. An annuitant purchases an annuity
					 with his or her property or property rights. Annuities shall be established to
					 provide the annuitant with payments representing principal and interest which
					 are more than the fair market value of the property used to purchase the
					 annuity. Annuities purchased prior to August 11, 1993, other periodic payment
					 plans, or annuities that are purchased with property rights belonging to
					 someone other than the Medi-Cal applicant/beneficiary or spouse shall continue
					 to be treated in accordance with Title 22, Section
					 50402 and Article 10 of this
					 chapter.
(4) "Assets" shall mean
					 all income and property of the individual or the individual's spouse, including
					 income or property which the individual or spouse is entitled to, but does not
					 receive because of circumstances brought about by:
(A) the individual or the individual's
					 spouse, or
(B) any other individual
					 or entity, including a court or administrative body, with legal authority to
					 act in place of, or on behalf of, the individual or the individual's spouse,
					 or
(C) any other individual or
					 entity, including any court or administrative body, acting at the direction or
					 upon the request of the individual or the individual's
					 spouse.
(5) "Beneficiary"
					 means any individual or individuals designated in the trust instrument as
					 benefiting in some way from the trust.
(6) "Date of establishment" means the date
					 the trust document (in the case of a trust), annuity purchase agreement (in the
					 case of an annuity), or other creating document (in the case of a similar legal
					 device) is signed and dated. A trust is not considered to be established on the
					 date it has been amended.
(7)
					 "Irrevocable trust" means a trust which cannot be revoked by its own terms or a
					 trust deemed to be irrevocable under State law.
(8) "Revocable trust" means a trust which can
					 be revoked by its own terms or a trust deemed to be revocable under State
					 law.
(9) "Similar legal device"
					 (SLD) means any legal instrument, device or arrangement that involves the
					 transfer of assets from an individual or entity (transferor) to another
					 individual or entity (transferee) with the intent that the assets be held,
					 managed, or administered by an individual or entity for the benefit of the
					 transferor or certain other individuals. SLDs also include annuities purchased
					 on or after August 11, 1993.
(10)
					 "Trust" means any arrangement in which an individual or entity (trustor)
					 transfers assets to a trustee with the intent that the assets be held, managed,
					 or administered by the trustee(s) for the benefit of the trustor or certain
					 designated individuals (beneficiaries). The trust must be valid under State
					 law. The term "trust" also includes any legal instrument or device similar to a
					 trust as described in subsection (b)(9) of this section.
(11) "Trustee" means any individual(s),
					 entity, trust advisory committee, or individual(s) with power of appointment,
					 who manages, holds, or administers a trust for the trust beneficiary or
					 beneficiaries.
(12) "Trustor" means
					 an individual who creates a trust. A trustor is also known as the "settlor" or
					 "grantor".