S.D. Admin. R. 67:46:05:32.03

Current through Register Vol. 51, page 57, November 12, 2024

Section 67:46:05:32.03 - Trusts excepted from consideration as a resource

Except for payments from the trust to the beneficiary or for the benefit of the beneficiary, § 67:46:05:32.02 does not apply to any of the following trusts:

(1) A Medicaid income trust created under the provisions of § 67:46:05:33.01;

(2) An irrevocable trust containing the assets of an individual who is disabled and under age 65 if the trust is established for the sole benefit of the individual and provides that upon the death of the individual and before any other distribution is made from the trust, the department shall receive all amounts remaining in the trust up to an amount equal to the total medical assistance paid on behalf of the individual; and

(3) An irrevocable trust containing the assets of an individual who is disabled which meets the following conditions:

(a) The trust is established and managed by a nonprofit association;

(b) The association must maintain the individual's assets in a separate account but may pool the individual's account with others for purposes of investments and the management of funds;

(c) The accounts in the pool must be established solely for the benefit of individuals who are disabled and must be established by the individual, the individual's parent, grandparent, legal guardian, or by the court;

(d) The trust must provide that upon the death of the individual or termination of the trust during the individual's lifetime, whichever is sooner, the department shall receive any amounts remaining in the individual's trust subaccount up to an amount equal to the total medical assistance paid on behalf of the beneficiary. The association may retain reasonable administrative fees and expenses, not to exceed the annual amount normally charged by the association for that trust subaccount;

(e) Funds of an individual age 65 or older that are transferred to this trust are subject to the transfer penalty provisions contained in chapter 67:46:05.

S.D. Admin. R. 67:46:05:32.03

21 SDR 162, effective 3/23/1995; 36 SDR 215, effective 7/1/2010; 46 SDR 050, effective 10/10/2019

General Authority: SDCL 28-6-1.

Law Implemented: SDCL 28-6-1.

Determination of disability, § 67:46:03:18.