Oklahoma Administrative Code › Title 317 - Oklahoma Health Care Authority › Chapter 35 - Medical Assistance for Adults and Children-Eligibility › Subchapter 5 - Eligibility and Countable Income › Part 5 - COUNTABLE INCOME AND RESOURCES › Section 317:35-5-41.6 - Trust accounts

Current through Vol. 41, No. 20, July 1, 2024
Monies held in trust for an individual applying for or
					 receiving SoonerCare must have the availability of the funds determined. Funds
					 held in trust are considered available when they are under the direct control
					 of the individual or his/her spouse, and disbursement is at their sole
					 discretion. Funds may also be held in trust and under the control of someone
					 other than the individual or his/her spouse, such as the courts, agencies,
					 other individuals, or the Bureau of Indian Affairs.
(1)
Availability determinations.
The worker should be able to determine the availability of a trust using the
				  definitions and explanations listed in (2) of this subsection. However, in some
				  cases, the worker may wish to submit a trust to the Oklahoma Department of
				  Human Services (OKDHS) State Office for determination of availability. In these
				  instances, all pertinent data is submitted to Family Support Services Division,
				  Attention: Health Related and Medical Services Section, for a
				  decision.
(2)
Definition of
				  terms.
The following words and terms, when used in this paragraph, have
				  the following meaning, unless the context clearly indicates otherwise:
(A)
Beneficiary.
Beneficiary
				  means the person(s) who is to receive distributions of either income or
				  principal, or on behalf of whom the trustee is to make payments.
(B)
Corpus/principal.
Corpus/principal means the body of the trust or the original asset used to
				  establish the trust, such as a sum of money or real property.
(C)
Discretionary powers.
Discretionary powers means the grantor gives the trustee the power to make an
				  independent determination whether to distribute income and/or principal to the
				  beneficiary(ies) or to retain the income and add it to the principal of the
				  trust.
(D)
Distributions.
Distributions means payments or allocations made
				  from the trust from the principal or from the income produced by the principal
				  (e.g., interest on a bank account).
(E)
Grantor (trustor/settlor).
Grantor (trustor/settlor) means the individual who establishes the trust by
				  transferring certain assets.
(F)
Irrevocable trust.
Irrevocable trust means a trust in which the
				  grantor has expressly not retained the right to terminate or revoke the trust
				  and reclaim the trust principal and income.
(G)
Pour over or open trust.
Pour over or open trust means a trust which may be expanded from time to time
				  by the addition to the trust principal (e.g., a trust established to receive
				  the monthly payment of an annuity, a workers' compensation settlement, a
				  disability benefit or other periodic receivable). The principal may accumulate
				  or grow depending upon whether the trustee distributes the receivable or
				  permits it to accumulate. Generally, the terms of the trust will determine the
				  availability of the income in the month of receipt and the availability of the
				  principal in subsequent months.
(H)
Primary beneficiary.
Primary beneficiary means the first person or
				  class of persons to receive the benefits of the trust.
(I)
Revocable trust.
Revocable
				  trust means a trust in which the grantor has retained the right to terminate or
				  revoke the trust and reclaim the trust principal and income. Unless a trust is
				  specifically made irrevocable, it is revocable. Even an irrevocable trust is
				  revocable upon the written consent of all living persons with an interest in
				  the trust.
(J)
Secondary
				  beneficiary.
Secondary beneficiary means the person or class of persons
				  who will receive the benefits of the trust after the primary beneficiary has
				  died or is otherwise no longer entitled to benefits.
(K)
Testamentary trust.
Testamentary trust means a trust created by a will and effective upon the death
				  of the individual making the will.
(L)
Trustee.
Trustee means an
				  individual, individuals, a corporation, court, bank or combination thereof with
				  responsibility for carrying out the terms of the trust.