Washington Administrative Code › Title 182 - Health Care Authority › WASHINGTON APPLE HEALTH › Chapter 182-516 - Trusts, annuities, life estates, and promissory notes-Effect on medical programs › Section 182-516-0001 - Definitions

Current through Register Vol. 24-14, July 15, 2024
"Acquire"
means, in the context of trusts, to
				  gain title to, or to gain ownership interest in an asset in a trust. Receiving
				  payment or benefit from an asset in a trust is not acquiring the asset.
"Annuitant"
means a person or entity that
				  receives the stream of payments from an annuity.
"Annuity"
means a policy, certificate, or
				  contract that is an agreement between two parties in which one party pays a
				  lump sum to the other, and the other party agrees to guarantee payment of a set
				  amount of money over a set amount of time.
"Beneficiary"
means, in the context of a trust,
				  a person or entity that is entitled to benefit from a trust.
"Grantor"
means the person or entity who owned
				  the asset immediately before establishing a trust with that asset.
"Immediate"
means, in the context of annuities,
				  an annuity that is fully funded at purchase with no accumulation or deferral to
				  allow accumulation.
"Income"
means, in the context of a trust, the
				  undistributed proceeds that a trust principal generates over a period
				  including, but not limited to, interest, dividends, rents and realized gains on
				  the sale or exchange. Any income not disbursed in one period is principal the
				  next period.
"Irrevocable":
(a) For a trust, "irrevocable" means the grantor or someone
				  acting on behalf of the grantor cannot reacquire any portion of the assets in
				  the trust for the benefit of the grantor or unilaterally change the terms of
				  the trust; and the beneficiary or someone acting on behalf of the beneficiary
				  cannot acquire any portion of the assets in the trust for the benefit of the
				  beneficiary or unilaterally change the terms of the trust. A legal instrument
				  that is called irrevocable, but permits acquisition or reacquisition of any
				  portion of the assets if some action is taken by or on behalf of the grantor or
				  the beneficiary, is revocable for the purposes of this chapter.
(b) A trust or annuity that is not irrevocable is
				  revocable.
(c) A trust is still irrevocable if it meets the definition
				  under (a) of this definition, but allows modifications to the trust to con-form
				  with changes in trust law, which occur after the establishment of the
				  trust.
(d) For an annuity, "irrevocable" means the contract cannot
				  be canceled and the terms of the contract cannot be changed.
"Principal"
means the assets, other than income,
				  that make up the trust, promissory note, or loan.
"Revocable"
means the instrument is not
				  irrevocable. See the definition of "irrevocable."
"Self-settled trust"
means any trust established
				  with assets that were originally owned by the beneficiary, or would have been
				  owned by the beneficiary if they had not been diverted into the trust by the
				  beneficiary, the court, or someone acting on the beneficiary's behalf.
				  Depending on the date a trust is established, a trust may be self-settled if
				  the assets were originally owned by the beneficiary's spouse, or would have
				  been owned by the beneficiary's spouse if they had not been diverted into the
				  trust by the beneficiary's spouse, the court, or someone acting on the
				  beneficiary's spouse's behalf.
"Sole benefit"
of a beneficiary means a trust
				  benefits no one but that beneficiary, whether at the time the trust is
				  established or at any time during the lifetime of the beneficiary.
"Third-party trust"
means a trust established
				  with assets originally owned by someone other than the beneficiary. However,
				  depending on the date a trust is established, a trust may be self-settled if
				  the assets were originally owned by the beneficiary's spouse, or would have
				  been owned by the beneficiary's spouse if they had not been diverted into the
				  trust by the beneficiary's spouse, the court, or someone acting on the
				  beneficiary's spouse's behalf.
"To or for the benefit of"
means that a payment
				  or benefit of any sort from a trust is transferred to the beneficiary, another
				  person, or entity such that the beneficiary derives some benefit from the
				  transfer.
"Trust"
means:
(a) Any arrangement in which a grantor transfers property to
				  a trustee with the intention that it be held, managed, or administered by the
				  trustee for the benefit of the grantor or another beneficiary; or
(b) Any legal instrument, device, or arrangement similar to a
				  trust in which:
(i) A grantor transfers an asset to another; and
(ii) The grantor transfers the asset intending that it be
				  held, managed, or administered for the benefit of the grantor or another
				  beneficiary.
"Trustee"
means a person or entity that manages
				  and administers a trust for the beneficiary.
"Uncompensated asset transfer"
means the
				  entirety of the fair market value of the asset transferred was uncompensated,
				  regardless of any consideration received in return for the
				  asset.
WSR 13-01-017, recodified as §
											182-516-0001, filed 12/7/12,
					 effective 1/1/13. Statutory Authority:
					 RCW
					 74.04.050,
					 74.04.057,
					 74.08.090, and
					 74.09.575. WSR 03-06-048, §
					 388-561-0001, filed 2/28/03, effective 4/1/03. Statutory Authority:
					 RCW
					 74.04.050,
					 74.08.090, and
					 74.09.500. WSR 01-06-043, §
					 388-561-0001, filed 3/5/01, effective
					 5/1/01.