Ohio Administrative Code › Title 5160:1 - Eligibility › Chapter 5160:1-3 - Medicaid for the Aged, Blind, or Disabled (ABD) › Section 5160:1-3-05.2 - Medicaid: trusts

Current through all regulations passed and filed through July 1, 2024
(A) This rule defines the treatment of a
			 trust for the purposes of determining eligibility for medical assistance
			 programs. This rule is only enforceable to the same extent as section
			 5163.21 of the Revised
			 Code.
(B) Definitions.
(1) "Beneficiary" means any person benefiting
			 in some way from the trust. The beneficiary can be the grantor or another
			 person. There may be more than one beneficiary of a trust.
(2) "Grantor" means any person who creates a
			 trust. For purposes of this rule, the term grantor includes:
(a) An individual;
(b) An individual's spouse;
(c) A person, including a court or
			 administrative body, with legal authority to act in place of, or on behalf of,
			 an individual or the individual's spouse; and
(d) A person, including a court or
			 administrative body, acting at the direction or upon the request of an
			 individual or the individual's spouse.
(3) "Irrevocable trust" means a trust that
			 cannot be revoked by the grantor or terminated by a court. A trust terminating
			 only upon the occurrence of an event outside the control or direction of the
			 beneficiary or the grantor is irrevocable.
(4) "Legal instrument or device similar to a
			 trust" means any legal instrument, device, or arrangement that is not called a
			 trust under state law, but is similar to a trust. This includes, but is not
			 limited to, escrow accounts, investment accounts, partnerships, contracts, and other similar arrangements. To constitute a
			 legal instrument or device similar to a trust, all of the following must be
			 present.
(a) There must be a person holding,
			 managing, retaining, or administering the property. For the
			 purpose of this rule, the person holding, managing,
			 retaining or administering the property is referred to as the
			 trustee.
(b) The trustee must have
			 an equitable, legal, or fiduciary duty to hold, manage, retain, or administer
			 the property for the benefit of another person. For the
			 purpose of this rule, this other person is referred to
			 as the beneficiary.
(c) The trustee
			 must hold identifiable property for the beneficiary.
(5) "Payment" means any disbursal from the
			 principal or income of the trust. A payment may include actual cash, non-cash
			 or property disbursements, or the right to use and occupy real
			 property.
(6) "Payments to or for
			 the benefit of the individual" means any payment to any person resulting in any
			 direct or indirect benefit to the individual.
(7) "Person" has the same meaning as set
			 forth in section 1.59 of the Revised Code and
			 includes an individual, corporation, business trust, estate, trust,
			 partnership, and association.
(8) "Revocable trust" means a trust that can
			 be revoked by the grantor or the beneficiary. For the purposes of the medicaid
			 program, the following trusts are "revocable trusts" even
			 when the
			 terms of the trust state it is irrevocable:
(a) A trust providing the trust can be
			 terminated only by a court; or
(b)
			 A trust terminating upon the happening of an event, when the event can
			 occur at the direction or control of the grantor, the beneficiary, or the
			 trustee.
(9)
			 "Testamentary trust" means a trust that is established by a will. This type of
			 trust does not take effect until after the death of the person (testator) who
			 created the trust.
(10) "Trust," for the
			 purpose of this rule, means any arrangement in which a grantor transfers
			 property (real or personal) to a trust with the intention that it be held,
			 managed, or administered by a trustee(s) for the benefit of the grantor or
			 certain designated individuals (beneficiaries). In this rule, the term trust
			 includes any legal instrument or device that is similar to a trust.
(11) "Trustee" means any person who manages a
			 trust. A trustee manages a trust's principal and income for the benefit of the
			 beneficiaries.